RBI steps up liquidity support as tighter cash conditions push up borrowing rates: Report

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Tightening liquidity in the banking system has pushed up short-term borrowing rates, prompting the Reserve Bank of India (RBI) to inject funds into banks, according to an ICICI Bank report. Meanwhile, rising oil prices and concerns over inflation are putting pressure on government bond yields. The report expects the 10-year benchmark bond yield to trade between 7.40% and 7.60% in the near term.