InvestorQ : Why does the RBI regularly conduct Open Market Operations (OMOs) and what is the purpose behind OMOs? Does it impact bond markets?
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Why does the RBI regularly conduct Open Market Operations (OMOs) and what is the purpose behind OMOs? Does it impact bond markets?

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1 year ago
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OMO or Open Market Operations is a market regulating mechanism often resorted to by Reserve Bank of India. Under OMO Operations Reserve Bank of India as a market regulator keeps buying or/and selling securities through its open market window. It's decision to sell or/and buy securities is influenced by factors such as overall liquidity in the system, disciplining a sentiment driven market, signalling of likely movements in interest rate structure, etc.

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