Liquidity normalisation key before RBI embarks on interest rate hikes
With global central banks raising rates, RBI may need to drain excess banking liquidity and align overnight rates with the repo rate before embarking on a fresh tightening cycle
5 min read Last Updated : Sep 17 2026 | 11:14 PM IST
With global central banks such as the European Central Bank (ECB) and US Federal Reserve raising interest rates, the Reserve Bank of India (RBI) may feel compelled to do its bit at the next monetary policy review scheduled for October 5-7.