India’s economy is set for a significant liquidity boost, with the Reserve Bank of India unveiling fresh measures aimed at strengthening the banking system and supporting economic momentum. The RBI announced it will purchase government bonds worth ₹2 lakh crore in four tranches spread across this month and January, a move designed to infuse durable liquidity into the financial system. In addition, the central bank will conduct a $10 billion foreign-exchange swap next month, further easing liquidity conditions and stabilizing currency markets.

Together, these steps amount to an estimated $32 billion injection into the economy, signaling the RBI’s intent to ensure adequate credit flow amid global uncertainty and domestic growth needs. Analysts see the measures as supportive for banks, lowering funding pressures and improving their ability to lend to businesses and consumers.

At the same time, global markets are witnessing a strong rally in precious metals. Gold prices surged more than 2% on Monday to a record high, driven by heightened geopolitical tensions, expectations of easier monetary conditions, and robust buying by exchange-traded funds (ETFs). Silver also touched an all-time peak, benefiting from both safe-haven demand and its growing industrial use.

The combination of proactive central bank action and a flight to safe assets underscores a market environment shaped by uncertainty, policy support, and shifting investor sentiment.