Analysts expect RBI to restore 100-bp corridor in Tuesday's policy review.
The study points out that for the determination of growth and investment at the macroeconomic level, the real interest rate is more relevant, even though the nominal interest rate is important for investment planning at the firm level.
Commercial papers, certificates of deposit also dry up
Despite the various steps taken by the central bank, the pressure on the rupee has continued, which is mainly due to global factor
Entities reluctant to get into new segment till settlement and margin issues are addressed
After fighting inflation for more than two years, Reserve Bank of India (RBI) Governor Duvvuri Subbarao finally managed to bring it below the five per cent level - the tolerance level of the central bank - in FY14.
There's need to address growth, but weak rupee putting pressure on prices.
CPI inflation slowed to 9.39% in April compared with 10.39% in March.
Richard Illey, chief economist, (Asia, ex-Japan) at BNP Paribas, talks to Business Standard on inflation and related issues ahead of the Reserve Bank's annual review of monetary policy.
The recent fall in commodity prices might not be sufficient to bring down the country's widening current account deficit
Unsustainable CAD, sticky inflation & impact on pace of rate cuts all worries for FY14.
This week, bond yields are expected to soften while the rupee could strengthen.
These tax-free bonds are priced below the yield of the 10-year benchmark government bond.
Falling growth, inflation and lower fiscal deficit are expected to prompt RBI to cut rates.
The pick-up in credit demand in coming months looks uncertain.
The New Year could bring some cheer among bankers, as the Reserve Bank of India (RBI) is expected to start the rate easing cycle as early as January, during the third quarter review of monetary policy.
Some see CRR cut as tight liquidity continues.
Of the 15 participants, 7 expect CRR cut, only one sees repo rate reduction.
The street feels that RBI needs to intervene further, as liquidity is about to get strained.
They need money as Rs 100,000 cr deposits will mature by December.
© 2025 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances