Operation twist what is it

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Internet Not Available. Wait for it… Log in to our website to save your bookmarks. Yes, Continue. Wait for it… Oops! Your session has expired, please login again. Thus by simultaneous buying and selling of government securities Operation Twist , the RBI can bring down the long-term interest rates.

For example, the RBI slashed key interest rate — the repo rate — by 1. The one-year median marginal cost of funds based lending rate MCLR has declined only 0. As interest rates remained high, most of the businesses were not taking loans. The credit growth was extremely sluggish. As the Indian GDP growth rate fell below 5 per cent, to revive the economy by attracting investment , reduction in the effective interest rate was necessary.

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