The Reserve Bank of India is unlikely to monetise the Centre’s fiscal deficit at least in the first half of this fiscal year, sources in the know said.
This, officials said, is because the bond market has factored in the Rs 4.88-trillion gross borrowing for April-September 2020. Additionally, the officials familiar with the RBI’s thinking said the central bank has not asked any primary dealer to be its proxy and bid on its behalf in the G-sec auctions, contrary to a report published last week.
“The first half borrowing calendar is out, and the markets have factored that in. There