The Reserve Bank today said it will pump in Rs 12,000 crore into the market through Open Market Operations on June 22 by buying government securities to ease the liquidity situation. 

"Consistent with the stance of monetary policy and based on the current assessment of prevailing and evolving liquidity conditions, the RBI has decided to conduct Open Market Operations (OMOs) by purchasing the following government securities for an aggregate amount of Rs 12,000 crore on June 22, 2012," RBI said in a statement. 

As part of the OMOs, the RBI will purchase government securities maturing in 2018 (bearing interest rate of 8.24 per cent), 2021 (8.79 per cent), 2030 (8.97 per cent) and 2032 (7.35 per cent). 

The auction, it added, would be held through the multi- security auction using the multiple price method. RBI on May 25 had pumped in Rs 11,194.25 crore in the system through the OMOs as against the notified amount of Rs 12,000 crore. 

Meanwhile, Reserve Bank Governor D Subbarao today said inflation at current levels is unacceptable andmonetary tightening is required to ensure sustainable growth. 

"We want to support growth in the medium term with low and stable inflation, which is possible only with tightening, but inflation at the current level is not acceptable," he said at a function organised by the Indian Merchants' Chamber here. 

He went on to say that "we would like to believe that the policy rate hikes have helped in moderating inflation... we look at all indices, be it WPI, CPI, etc in policy making. Those wanting to gauge our responses should look at them; don't criticise us for confusing..." 

Yesterday, the RBI had stunned markets and industry by leaving all the key rates and cash reserve requirements for banks unchanged despite widespread expectations of rate cut. 

Irked by the policy decision, Commerce and Industry Minister Anand Sharma had said he would take up the matter with the Finance Minister and the RBI Governor. 

The wholesale price index based inflation rose to 7.55 per cent in May, while GDP growth last fiscal plunged to a nine-year low of 6.5 per cent. (PTI)