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.

The Reserve Bank of India (NSE:BOI) (RBI) has announced measures to increase liquidity in the banking system. These actions include open market bond purchases and a buy-sell swap forex auction.

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,

India's central bank on Monday announced a host of measures to inject liquidity in the banking system, including bond purchases and dollar/rupee swaps. The Reserve Bank of India will buy government bonds worth 600 billion rupees ($6.