The Reserve Bank of India move to slash reverse repo rate by 25 baiss points (100 basis points = 1%) may adversely impact liquid and other money market funds in the near term, but falling yields would nullify the impact, said debt mutual fund managers.
The RBI on Friday announced measures to maintain liquidity in the banking system, including slashing the reverse repo rate by 25 basis points to 3.75%. The reverse repo rate is the interest rate paid by RBI on surplus funds parked by ban ..
