RBI credit policy may had been leaked
About an hour before the credit policy was displayed on the RBI website, a ‘little bird’ on Mint Street seems to have told traders in Mumbai’s financial market what lay ahead.
By TNN |
MUMBAI: About an hour before the credit policy was displayed on the RBI website, a ���little bird��� on Mint Street seems to have told traders in Mumbai���s financial market what lay ahead.
Institutions appeared to have got a whiff of the credit policy measures (or rather, their absence), making a beeline for buying government bonds between 11.10 am and noon. And by the time news tickers flashed reports that there was no rate hike, bond prices were already up.
Old-timers in the bond market had little doubt that there was a leak from the otherwise secretive central bank. They, however, do not rule out the possibility of an ���outsider��� present in the central bank during the sensitive pre-policy hour.
As deals are cut on the screen���a faceless, electronic trading platform���it���s impossible for market participants to guess the buyers��� identity. But nothing stops the clearing corporation and RBI from tracking down these ���informed��� players.
Later in the evening, RBI governor YV Reddy asked officials to identify buyers in the pre-announcement rally. ���Even if the source of the leak cannot be identified, we should be able to identify the beneficiaries,��� said officials.
Institutions appeared to have got a whiff of the credit policy measures (or rather, their absence), making a beeline for buying government bonds between 11.10 am and noon. And by the time news tickers flashed reports that there was no rate hike, bond prices were already up.
Old-timers in the bond market had little doubt that there was a leak from the otherwise secretive central bank. They, however, do not rule out the possibility of an ���outsider��� present in the central bank during the sensitive pre-policy hour.
As deals are cut on the screen���a faceless, electronic trading platform���it���s impossible for market participants to guess the buyers��� identity. But nothing stops the clearing corporation and RBI from tracking down these ���informed��� players.
Later in the evening, RBI governor YV Reddy asked officials to identify buyers in the pre-announcement rally. ���Even if the source of the leak cannot be identified, we should be able to identify the beneficiaries,��� said officials.
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