A key overnight interbank rate has averaged 6.41 percent so far in July, compared with 6.46 percent for all of June, data compiled by Bloomberg show. It has fallen 12 basis points this month, driven also by optimism that strong monsoon rains will help keep inflation in check. By Kartik GoyalShort-term borrowing costs in India are sliding as the central bank's cash infusions boost availability of funds in the financial system.The benchmark three-month interbank rate has dropped 15 basis points this month to 7 percent on Monday, the lowest since September 2010, according to data compiled by Bloomberg . The Reserve Bank of India has injected 800.1 billion rupees ($11.9 billion) through open-market debt purchases since April, the month in which it announced a series of changes to its liquidity management framework. The currency has gained 0.5 percent this month, paring its 2016 decline to 1.5 percent.

Source: Economic Times July 12, 2016 06:11 UTC