RBI to opt for 'operation twist' to enforce the rate of interest to come down
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The Reserve Bank of India is going for "operation twist" for the second time in the past few weeks. The Central bank is going to buy government securities of 10-year tenure and at the same time sell government bonds of up to one-year tenure both worth Rs 10,000 crore each, in order to force the rate of interest in the economy to come down. The RBI has cut interest rate five times, by a total of 135 basis points since Feb.