......... Basically, our objective was to address the liquidity constraints in the system. We have been doing OMOs for about seven weeks now and the liquidity pressures still persist. The CRR is essentially a liquidity tool, but it has strong monetary signalling in it. When we looked at the liquidity situation, we realised that a CRR cut would address it without compromising , or conflicting with, our monetary stance. We addressed the liquidity problem with an instrument that has monetary implication but does not compromise our monetary stance............
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