Mumbai: Monetary easing by global central banks across developed and emerging market economies has gathered pace since November 2024, when Donald Trump was elected president of the United States. The latest monetary easing by Bank of Indonesia, the first central bank to cut rates in Asia, has taken markets by surprise due to the weak Indonesian rupiah.Four of the six central banks overseeing the 10 most heavily traded currencies held meetings since November, and have lowered their lending benchmarks.When India's monetary policy committee chaired by the Reserve Bank of India Governor will meet on February 5-7 to review policy rates, economists expect the central bank to prioritise injecting liquidity in the banking system over a rate cut.117381961Central banks in New Zealand and Sweden cut interest rates by 50 basis points, while the US Federal Reserve and Bank of England cut rates by 25 basis points. Australia and Norway held their rates."In the case of Indonesia, the Bank of Indonesia took a conscious call to prioritise growth over currency strength. On the other hand, the Bank of Korea opted for a dovish pause, and indicated that they might look to move in the next policy. In the RBI's MPC (Monetary Policy Committee), we could see either of the two cases mentioned above," Nitin Agarwal, head of trading at ANZ Bank told ET."With growth and inflation both moderating, there is real pressure on RBI to cut interest rates. If the RBI chooses to pause rates, we can expect major steps to support domestic liquidity," Agarwal said.Market participants expect open market operations (purchases) or dollar-rupee buy-sell swaps by the RBI to support liquidity, if the central bank chooses to keep the status quo on its policy repo rate."We expect the RBI to announce longer tenor - 28-day or 56-day - variable rate repo (VRR) auctions, buy/sell swaps, OMO purchases and another 50-basis-point cut to the cash reserve ratio," said Sonal Verma, chief economist - India and Asia, Nomura, said in a report on January 17.RBI uses VRR auctions to inject liquidity into the banking system, where the transaction is reversed after maturity. Gauging the liquidity conditions, RBI announced an ₹1.25 lakh crore VRR on Monday against ₹50,000 crore each Thursday and Friday.Average system liquidity has been in deficit at ₹1.55 lakh crore as of January 16, RBI data showed.