The Reserve Bank of India (RBI) has pumped in Rs 9.57 trillion, which is 4.7 per cent of gross domestic product, of liquidity into the system to stave off the financial stability crisis and ease domestic financial conditions substantially, Governor Shaktikanta Das said in his monetary policy speech on Thursday.
The actions taken by the central bank have ensured that the spreads of three-year ‘AAA’-rated corporate bonds over government securities (G-secs) have reduced from 276 basis points (bps) on March 26 to 50 bps by end-July.
Spreads on ‘AA+’-rated bonds softened from 307 bps to 104 bps; spreads on ‘AA’ bonds narrowed