The S&P BSE Midcap and the S&P BSE Smallcap indices added 0.5% and 0.7%, respectively
India Inc on Tuesday expressed disappointment over the Reserve Bank increasing the key rate by 0.25 per cent and hoped that banks would refrain from hiking lending rates as such a move will scuttle economic recovery.
Inflation in food articles during May stood at 1.13 per cent, as against 2.55 per cent in April.
The Reserve Bank may be hitting the end of its tolerance for high inflation and will most likely hike interest rates in the first half of 2022, analysts said on Friday. The central bank will also start rolling back its accommodative policies which have led to easy liquidity conditions, they said. The view from analysts came even as inflation cooled down to 5.6 per cent for July, after two months of breaching the upper end of the RBI's tolerance band of 6 per cent.
Inflation in food articles during June stood at 2.04 per cent, as against 1.13 per cent in May.
As it stands, there does not seem to be a threat to prices.
Achieving inflation target of 4 per cent, recovery after remonetisation and hardening profile of oil prices are some of the risks which the RBI is watching closely, says Gaurav Kapur.
Softening inflation, Das said would make available more policy space to the central bank to address risks to the growth going forward.
Deputy governors Subir Gokarn, Usha Thorat and Shyamala Gopinath will get additional portfolios, which were until now under K C Chakrabarty, RBI said in a statement today. The central bank did not give any reason for the reshuffle and said the changes will be effective tomorrow.
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.
RBI may revise remuneration for banks.
FY22 will be the year to rebuild with the IMF projecting output growth at 11.5 per cent, economic survey at 11.0 per cent and the RBI's Monetary Policy Committee at 10.5 per cent.
Improved credit profile may make you eligible to transfer your existing home loan to another lender at a much lower rate.
The US Federal Reserve has said economic activity is improving while deciding to continue with the near-zero interest rate regime to bolster the economy.
'People know if inflation is not within the tolerance band, then action will be taken so they do not expect inflation to rise above that.'
The Reserve Bank has told the International Monetary Fund (IMF) that the objective of frequent interventions in the forex market is to curb excessive volatility, dismissing the Fund's rationale for reclassifying India's exchange rate regime. The IMF, following the Article IV consultation with the Indian authorities, reclassified the status of the exchange rate regime to "stabilised arrangement" from "floating" for period between December 2022 to October 2023. India's Executive Director at IMF K V Subramanian and Senior Advisors Sanjay Kumar Hansda and Anand Singh questioned the selection period adopted by the Fund for analysis and also reclassification of the country's exchange rate regime.
RBI may go for a 25-basis point cut at its February policy meet.
A CRR cut will help banks to reduce lending rates.
Rajan also said the outlook for agriculture is subdued, in view of both rabi and kharif prospects being hit by monsoon vagaries.
Retail inflation softened to 6.71 per cent in July due to moderation in food prices but remained above the Reserve Bank's comfort level of 6 per cent for the seventh consecutive month. With retail inflation continuing to remain high despite a fall in prices of vegetables and edible oils, among other commodities in July, the Reserve Bank of India (RBI) might go for another rate hike in September. The Consumer Price Index (CPI) based retail inflation was at 7.01 per cent in June and 5.59 per cent in July 2021. It was above 7 per cent from April to June this fiscal.
In the June quarter of FY24, 51 per cent of consumers who took small-ticket personal loans already had more than four credit products at the time of accessing yet another new loan, compared with just 17 per cent in the June quarter of FY20, points out Tamal Bandyopadhyay.
Earlier, the RBI had imposed similar restrictions on commercial banks and NBFCs.
Will RBI chief have the final say, in the form of a veto
With the widespread use of new technologies, inter-connectedness and dependency, newer risks, threats and vulnerabilities have emerged.
RBI has, since January, cut its policy rate four times.
RBI's out-of-turn rate cut has surprise few economists.
RBI is scheduled to announce mid-quarter review of monetary policy for 2013-14 on June 17.
Wholesale price-based inflation eased to a nine-month low of 4.68 per cent in February, while retail inflation slowed to a 25-month low of 8.1 per cent.
The RBI guv said global economy is actually recovering, though slowly
The Reserve Bank of India had taken steps to tighten liquidity in a bid to curb volatility in the forex market after the rupee fell to a record low of 61.21 to the dollar on July 8.
RBI Governor Raghuram Rajan wanted to improve training for staff, through initiatives such as sending them to other central banks for short stints.
The Delhi high court on Friday sought the Enforcement Directorate's stand on a plea by Aam Aadmi Party leader Sanjay Singh against his arrest in a money laundering case related to alleged irregularities in the now-scrapped Delhi excise policy.
The market direction will be guided by corporate earnings, especially the oil & gas companies, since they were responsible for earnings disappointment in the past quarter as well.
Are we adopting an idea whose time has come and gone? My feeling is, yes, says ex-banker C Joseph Chacko in the fourth article of the series on inflation targeting.
The Delhi high court on Friday refused to interfere with the 'malicious' arrest of Aam Aadmi Party leader Sanjay Singh by the Enforcement Directorate in a money laundering case related to the now-scrapped excise policy of the Delhi government, saying it cannot impute political motive to a 'premier' investigating agency in the absence of material on record. It also said Singh's was not a 'prima facie case of no evidence at all'.
They have also called for giving cash to the poor, so that demand is generated in the economy.
Encouraged by foreign exchange reserves touching record levels, the Reserve Bank on Tuesday doubled the annual overseas investment ceiling for individuals to $2,50,000.
According to D&B, food price levels might witness a rebound as foodgrain production is estimated to have declined during 2014-15.
A Delhi court on Friday dismissed the bail application of Aam Aadmi Party leader Sanjay Singh in a money laundering case related to the alleged Delhi excise policy scam.
'There are occasions when the prices of individual items like food raise inflation; then supply-side measures must be taken.' 'But if there is continued inflation, it means liquidity is aggravating the situation.'
