RBI steps in with measures to boost demand for bonds, cool down yields

Says it is comfortable with a rising rupee, which helps bring down import-led inflation, adds that it remains "committed to ensuring comfortable liquidity and financing conditions in the economy"

The Reserve Bank of India (RBI) on Monday stepped in on Monday with a number of measures that would boost demand for government bonds and keep yields under check and improve liquidity in the system. 

The RBI cited impact on market sentiment “by concerns relating to the inflation outlook and the fiscal situation amidst global developments that have firmed up yields abroad.” 

The central bank also indicated that it is comfortable with an appreciating rupee, which helps bring down import-led inflation, and said it remained “committed to ensuring comfortable liquidity and financing conditions in the economy.”  

Stepping in to boost