Indian lenders clamor for durable liquidity infusion from central bank

Indian lenders requested the Reserve Bank of India to infuse durable liquidity due to liquidity deficits. Persistent tight liquidity could keep borrowing rates high, affecting lending rates as economic growth slows. Suggestions included longer-term variable rate repos, FX swaps, and open market purchases of bonds. There were also talks on the rupee's recent decline and dollar demand.