Reserve Bank cuts repo by 25 bps: MPC's rate cut bonanza isn't over yet; expect more moves to spur the economy
Lowering of the repo rate by the RBI has to get transmitted and for this to happen, deposit rates should be lowered so that the MCLR comes down
The next few days will be very crucial for the central bank and markets and the earlier a decision taken on Urjit Patel's resignation, the better it will be to eschew speculation
A CRR cut of 50 bps would have released at least Rs 65,000 crore. The RBI is either satisfied that there is no need to inject such a quantum of funds or that it would use OMOs to provide comfort as and when it is required.
if we look at the measures announced by the government to stabilize the rupee and analyze the impact, then it appears that we may be barking up the wrong tree.
Liquidity conundrum: Govt, Reserve Bank of India have done their bit, but it isn't easy to bell the cat
A CRR cut is required to infuse a big dose of liquidity which can actually also move the yields downwards if supported by OMOs
Home loans, which have been the mainstay of banking in the last three years, would be affected by these two successive rate hikes and homeowners will be affected here
RBI ups repo to 6.25%: MPC takes aggressive stance on inflation; expect two more rate hikes this year
Increasing the rates based solely on expectations of higher inflation is a strong signal that the central bank will continue to do so in case inflation increases further notwithstanding the targets being less than 5 percent for the year.
The next RBI policy meeting too could be benign. The progress of the monsoon and a clearer picture on oil will be the clues for both inflation and policy.
RBI holds rate at 6%: Policy a firm statement of independence by MPC; growth is for govt to take care of
The RBI will not budge on interest rates as inflation threat looms. The statement seems to be clear on this.
How would we evaluate the success of the scheme? Will it be in terms of the gains in revenue relative to loss of GDP? Or will it be the measure of currency lost in the system?
The 9 August policy would be the last by present RBI Governor whose term ends on 4 September
Demand-driven pressures are likely to be stoked by a hike of salaries and pensions for about 10 million government employees and pensioners that took retroactive effect on 1 January
Banking and realty stocks fired on all cylinders while global cues were largely positive
Even as the market expects a status quo from the central bank on key policy rates, optimism in other global markets boosted sentiment back home
The central bank may wait for the impact of delayed monsoon rains before making the next move
What consumer must note here is that even if Raghuram Rajan chooses to surprise with a status quo in policy rates, bank lending rates and deposit rates are set to drop in the approaching months
However, market breadth showed optimism with 1,025 stocks advancing against 777 declines on BSE
Banking, auto and realty shares linger in negative territory post RBI's credit policy announcement
Sensex sheds 220 points to a low of 27,629.23
Index gained 323 points to touch a high of 27,829.91 points