Rajan said it was important that the government and the RBI be vigilant to the growth scenario.
Central banking is a science, not an art, Tamal Bandyopadhyay tells RBI Governor Shaktikanta Das.
Economists have said if a stimulus is needed it should be different from what was provided in 2008-09, when the economy faced the ripple effects of a global meltdown following the Lehman Brothers collapse.
This Budget plans for an increase to 10.3% of GDP from 9.9%.
Modi govt must implement few policy measures which it announced in Budget 2015.
'Most importantly, marking a departure from the past, the RBI has made it clear that it is not overtly worried about the level of the local currency,' notes Tamal Bandyopadhyay.
An action on the rate front is unlikely to figure in Rajan's plan for the moment.
'The slide in growth has arisen primarily because we have an NBFC crisis on top of a banking crisis,' points out T T Ram Mohan.
RBI had received 72 applications for small finance bank licences.
Growth in the third quarter (October-December) is expected to be the weakest in years, with spending hit due to unavailability of enough replacement currency.
Businesses are still taking time to adjust in the new tax regime, which would weigh on growth rates for the financial year closing today.
As the government plans to take sector-specific steps to tackle the slump, Finance minister Nirmala Sitharaman will soon hold talks with representatives from various sectors to get and take steps so that the confidence of those sectors can be restored.
RBI will take a cue from the Fed policy statement.
'We all wanted a strong Centre with a decisive mandate from the people, to allow them to take bold decisions.'
'We have promised to ensure reduced tax rates.'
'The assumed linear correlation between forced lower yields, higher bank borrowing from the RBI, higher lending, and higher growth involves leaps of faith, each a step on the quicksand of false beliefs,' warns Debashis Basu.
'Prime Minister Modi stated several times that we shall not let this challenge go away without converting it into an opportunity to undertake systemic reforms.' 'And hasn't that been reiterated in action?'
Thanks to the recapitalisation by the government and measures taken by the central bank, collapse of any large housing finance company won't pose as big a risk as it had six months ago.
If banks cannot charge interest from borrowers during the moratorium, who will bear that cost? Should the depositors subsidise the borrowers by foregoing interest on deposits? In that case, we will turn banking on its head! notes Tamal Bandyopadhyay.
'Common sense says if one can afford, servicing the loans during this period is a better bet than postponing it by three months,' says Tamal Bandyopadhyay.
he reason behind the cut in policy rate seems to be a slowing economy
There are already some signs of stress in this market.
The finance ministry has put out a revised draft in public domain.
RBI conducts interviews for first lateral hire for CGM post; deputy governors to head four distinct verticals.
FPIs, which are holding large exposures in Indian debt, could also be expected to book some capital gains as yields slide down
Firms that should borrow abroad do not do so enough, and those that should not borrow abroad do.
'If the government spends Rs 10 lakh crore this year then you would be looking at a GDP growth of minus 5 per cent.' 'If you do not do this, you will be looking at GDP growth between minus nine and minus 10 per cent.'
The Reserve Bank on Tuesday said growth is expected to fall below 5 per cent in 2013-14 in absence of pick-up in manufacturing sector, but likely to recover to 5.5 per cent in the next financial year.
Watal panel had suggested an independent payments regulator be set up.
"I am an academic and I have always made it clear that my ultimate home is in the realm of ideas," Rajan said in a letter to staff.
'We are looking at the Budget with the hope that it will address all issues even at the cost of exceeding the fiscal deficit target.'
Finance Minister Arun Jaitley on Monday presented the Union Budget for 2016-17.
Nitin Desai suggests some concrete measures to revive investment and boost growth.
A fall in the rupee could boost exports. But the flip side of the equation is that a weaker rupee could stoke some inflation
Data on the real value of the currency against other currencies tells a different story.
Of the seven surveys presented under Modi govt, predictions of three were quite close to the actual GDP growth rate, one saw the base year change in between, but the last three were way off the mark.
In India we have to be careful not to copy any level of dependence on the financial sector and infatuation with the get-rich-quick syndrome, says Jaimini Bhagwati.
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As many as nine respondents said RBI would hold the repo rate at 8% till March-end, 2015
Asian emerging market stock prices did see a bounce post Fed-talk.
While an impending rate cut is a good reason to enter debt funds, another is the high valuations in equity markets.
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