Reserve Bank Governor Raghuram Rajan is widely expected to hold the key rates citing high inflation at the fourth bi-monthly monetary policy announcement on Tuesday, even though the pro-growth lobby has been wishing for a rate cut.
The government is set to ask PSBs to expeditiously introduce repo-rate linked products "to step up affordable credit".
If you don't have a specific goal, but want intermittent liquidity, then ladder your FDs, that is, invest in FDs of varying maturities, such as one, two, three, five or even 10 years. Laddering ensures FDs mature at regular intervals.
The Reserve Bank of India (RBI) is likely to keep monetary policy steady in June despite sluggish economic activity as inflation remains elevated, a Reuters poll showed on Wednesday.
Investors who decide to enter medium to long-duration funds should be cognisant of the risk.
Elections may be a few months away, but the government may get into election mode much earlier than that, predicts A K Bhattacharya.
In the last policy review in December, RBI had decided to keep policy rate unchanged.
'Comparing the rates of interest with PSU banks, the three- and five-year time deposit rates of the post office are more favourable.'
The global financial services major had earlier said that the central bank would keep its policy rates on hold.
'Once the lockdown is lifted, we will see some pickup in demand.' 'And my sense is that it will be a long walk this time given that we have lost three months of economic activity.'
Investors' confidence has been revived in recent weeks on the likelihood the elections will usher in a new government.
'FDs should hold your emergency funds, equivalent to around 6-12 times your monthly expenses.'
Select the exact category by matching your investment horizon to the portfolio duration, suggests Sanjay Kumar Singh.
The SBI report ruled out a October rate hike
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According to the global financial services major, the primary concern for the RBI at the moment has to be anchoring elevated inflation expectations and stabilising the currency, which could face renewed pressures if the Fed begins QE tapering this week, as widely expected.
RBI is committed to bringing down retail inflation to eight per cent by January 2015 and six per cent by January 2016.
The Reserve Bank of India (RBI) is expected to keep policy rates unchanged at a six-weekly rate review on Tuesday, ending a year-long cutting cycle as it focuses instead on underpinning the plunging currency.
Bajaj Finance was the top gainer in the Sensex pack, rising around 4 per cent, followed by Maruti, SBI, Bajaj Finserv, Sun Pharma and Asian Paints. NSE Nifty rallied 293.05 points to 17,469.75.
There is a narrow chance that the central bank may cut rates in the future, according to a poll of 15 economists and treasurers.
Reversal in the declining economic growth trajectory is clearly the need of the hour and all steps should be taken to bring about this change.
RBI may hold rates in Apr; to go for 25 bps cut by June: DBS
Many officials had been talking of taking the baton of global growth.
RBI's likely focus will shift back towards the resolution of non-performing loans in the banking system for reviving credit demand
The Reserve Bank of India kept interest rates unchanged at 8.0 percent on Tuesday as widely expected, staying focused on containing inflation while adopting a more dovish tone in response to the government's call for help to revive economic growth.
Foreign capital inflows also boosted the rupee value against the dollar
Emphasising that revival of growth should be the number one priority of the RBI at this time, industry groups said apprehensions about inflation rearing its head again may prove to be misplaced.
Better supply management and check on hoarding should be able to prevent food price spikes
Banks have not cut rates yet as March is typically a busy season.
The Reserve Bank may cut key interest rates as early as this week.
However, RBI would continue to nudge banks to cut lending rates
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Analysts at Barclays pitched for a 0.25 per cent cut to generate demand advising the central bank to throw caution to the wind.
SBI Chairperson Arundhati Bhattacharya said any rate cut by the bank would depend on a lot many factors.
The six-member monetary policy committee voted 5:1 for the decision, with only Ravindra Dholakia voting for a 0.25 per cent reduction in rates.
Indian Bank expects recoveries to be more than slippages in this financial year, which will result in improved asset quality.
Banks looking to raise capital via bond sales to fund decade-high credit growth were compelled to put some of these debt issuances on hold amid a sharp rise in yields since late September, sources told Business Standard. A major private lender, Axis Bank, has not yet followed through with a planned issuance of infrastructure bonds worth around Rs 3,000 crore. This is because volatility in the bond market in late September led to investors seeking higher yields, sources said.
'Your decisions should not be driven by your view on the market, but by your objectives, risk appetite, and time horizon.'
Bankers expect RBI to help them spur lending growth.
'They can transition from short to long-duration funds when the yield curve normalises.'
The Reserve Bank of India cut its repo rate by 25 basis points to 6.50 per cent.
