Budget 2019: Will the OMO anchor work in FY20?
Updated : April 04, 2019 08:15 PM IST
The fiscal deficit for FY 2020 has been pegged at 3.4 percent. This translates into a gross borrowing program of ~Rs 7.10 trillion
Bereft of OMOs, there are worries on who will absorb this mammoth government bond supply. Most banks are already SLR surplus and hence may not really be in a rush to buy sovereign bonds