RBI takes certain steps to curb the menace of Inflation. In this context, which among the following will not help RBI in controlling the inflation in the country?
[A]An increase in the Bank Rate
[B]An increase in the Reserve Ratio Requirements
[C]A purchase of securities in the open market
[D]Increasing the Repo Rate
A purchase of securities in the open market
When RBI purchases the securities, RBI is effectively releasing liquidity in the market. Increased liquidity will increase inflation.