India's central bank announced on Monday a host of measures to inject liquidity into the banking system, including bond purchases and dollar/rupee swaps, which analysts and traders said could be a precursor to a rate cut next month.

RBI on Monday said it will purchase government securities worth ₹60,000 crore through open market operations in three tranches of ₹20,000 crore each.

RBI announced measures to infuse over Rs 1.5 lakh crore in money markets to address liquidity shortfall. The plan includes government bond buy-backs, a long-term repo auction, and a dollar-rupee swap auction.

The Reserve Bank of India's unexpected purchase of government bonds pushed down bond yields on Monday and raised bets for a cut in interest rates in February, investors said.

The Reserve Bank of India on Monday said it will purchase government securities worth Rs 60,000 crore in three tranches and announced several other steps to inject liquidity into the banking system.As part of measures to manage liquidity conditions,