The Marginal Standing Facility (MSF) is now at 10.25% since July 17, after RBI’s act of making short term money more expensive. It had not been used for a while, keeping me surprised – after all, a system that borrowed 92,000 cr. every day now was limited to about 37,000 cr. a day, and there was no excess requirement? (Which would have be taken as MSF)
MSF borrowing has just gone to over 23,000 cr. on Thursday, before the long weekend. This is the second highest since the RBI liquidity squeeze.
Meanwhile market rates remain at the 10% range for the short-term.