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Rajan says call rate should hover near repo rate

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Reuters MUMBAI
Last Updated : Apr 02 2014 | 4:08 PM IST

MUMBAI (Reuters) - The Reserve Bank of India will try to manage short-term liquidity to ensure the overnight call money rate is closer to the policy repo rate, the central bank governor Raghuram Rajan said on Wednesday.

Rajan's comments, during a teleconference with analysts, came after the overnight cash rate was trading at 9.10/9.15 percent on Wednesday, well above the repo rate of 8 percent, after the RBI announced fresh curbs on banks' borrowing from the overnight funding window.

(Reporting by Suvashree Dey Choudhury; Writing by Neha Dasgupta; Editing by Rafael Nam)

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First Published: Apr 02 2014 | 3:53 PM IST

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