RBI Notifications

Operation Twist


From UPSC perspective, the following things are important :

Prelims level: Op Twist, Yeild Curve

Mains level: Outcomes of the Op Twist

Reserve Bank of India Governor has informed that the market’s reaction to Operation Twist was on expected lines.

Operation Twist

  • The simultaneous buy-sell of government bonds, known as Operation Twist, was conducted to bring down long-term interest rate while allowing short term rates to inch up.
  • The move was aimed at addressing liquidity, which is assymetric — abundant at the shorter end but not on the longer end. The move will help in monetary transmission.
  • The central bank has so far carried out three rounds of simultaneous bond buy-and-sell via open market operations.

For more reading, navigate to the page:

Operation Twist

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