India's Central Bank Cash Infusions Lead to Stealth Policy Easing

Large cash infusions by India's central bank are resulting in what some analysts describe as stealth policy easing. Bloomberg posted on X, noting that these actions have pushed a key overnight borrowing gauge significantly below the benchmark rate. This development is seen as a strategic move by the central bank to manage liquidity in the financial system without making overt policy changes. Analysts are closely monitoring the situation, as it could have implications for the broader economic landscape in India. The central bank's approach reflects a nuanced strategy to influence market conditions subtly, aiming to support economic stability.