Fitch Solutions sees RBI keeping benchmark interest rates unchanged during the fiscal to March 2022 following its decision to buy Rs 1 lakh crore of government bonds. "We had initially expected another policy rate cut to arrest the rise in government bond yields since the Union Budget announcement in February. "However, having an explicit bond purchase guidance from the RBI following the announcement of the G-SAP will also achieve a similar effect, if not even be more effective than a rate cut on capping the increase in bond yields," it said in a note. The Reserve Bank of India (RBI) held its policy repurchase (repo) rate unchanged at 4 per cent at its monetary policy meeting on April 7.
The cost of holding one-year forward dollars rose to 482.75 basis points from 472.75 bps on Tuesday.
With airfares spiralling, members of a Parliamentary panel grilled top officials of the Civil Aviation Ministry and demanded quick action to curb overpricing of air tickets.
But it would be unwise on the government's part not to heed the suggestions made by the experts group, set up by the Supreme Court, in particular the one on involving the states and giving them the flexibility in designing and implementing the farm laws, observes A K Bhattacharya.
India has not been able to compete with countries such as Bangladesh and Vietnam.
In a meeting with the President on behalf of these 18 non-National Democratic Alliance parties, Leader of Opposition in Rajya Sabha Ghulam Nabi Azad said he has requested the President to return the bills, and only give his assent after they have been passed after following proper rules and procedures.
Qatar will permit ticketed fans to buy alcoholic beer at World Cup soccer matches starting three hours before kick-off and for one hour after the final whistle, but not during the match, a source with knowledge of plans for the tournament said.
Vashi APMC traders see supplies to Mumbai impacted over movement curbs. A number of trucks sent to Mumbai from the market has reduced from 600 per day in recent times to around 300.
Also keenly watching inflation numbers, with wholesale inflation data expected today
He also announced unemployment allowance for the youth, as the party's fourth poll guarantee, on coming to power.
The Reserve Bank will go for a "dovish pause" at Wednesday's policy review announcement amid developments such as a rise in inflation, government maintaining the inflation target band and a likely impact on growth due to local lockdowns on rising COVID-19 infections, analysts said on Monday. Economists at American brokerage Bofa Securities said price stability, growth and financial stability will become the prime focus areas for the central bank going forward. "The RBI MPC (Monetary Policy Committee) should deliver another dovish pause on Wednesday," it said. The policy announcement, the first for the fiscal, will come days after the government maintained the RBI's target to ensure inflation to be within 2-6 per cent band for five more years.
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As many as nine respondents said RBI would hold the repo rate at 8% till March-end, 2015
Indices reversed all its losses during late trades.
'They have helped stabilise our market by acting as a counterbalance to foreign funds.'
At the end of September quarter, Tail Winds held 68,15,843 shares, equivalent to 7.89 per cent holding, of Jet Airways.
Believe it or not, the regulator is even stretching its arm to identify stressed borrowers and gauge the 'distance to default' as a measure of a particular bank's fragility, reveals Tamal Bandyopadhyay.
There is confusion around the registration guidelines and the cut-off dates for acquiring the degrees.
Barring stray incidents of violence like stone pelting, the shutdown called by the MVA allies Shiv Sena, the Congress and the Nationalist Congress Party was largely peaceful.
As a result of the downturn in commodity prices across the world, and the easing of supply constraints on most commodities because of good domestic production, there is hardly any incentive for over-stocking by trade or bulk consumers of agri-commodities. Also, it is amply clear that the imposition of storage limits on farm goods has had little impact on their prices or the overall rate of inflation. Even the ban on futures trading has proved ineffectual.
The speed at which he led the central bank in different areas -- ranging from internal reorganisation to inflation fighting, stabilising the currency, taking on rogue corporations, cleaning up bank balance sheets, and opening the sector -- makes one believe that Rajan knew he had only three years to do his job. A fascinating excerpt from Tamal Bandyopadhyay's MUST-READ Roller Coaster: An Affair with Banking.
Traders are waiting for the earnings season to kick off.
The thinking at the Centre is that since the RBI has ramped up purchases of government bonds, the interest earned on them will be transferred to the exchequer as dividend.
The brokerage said it has high hopes for recovery and reforms following the general elections.
Banks have raised concerns over the new international trade settlement in rupee, fearing that facilitation of such a mechanism could result in them facing the ire of economic sanctions by the West, people aware of the matter said. Large banks with overseas operations have sought clarity and assurance from the Reserve Bank of India (RBI) that they will not be targeted with sanctions for facilitating rupee trade with a sanction-hit country such as Russia. The present payment mechanism is a shift from earlier such arrangements, like the one with sanction-hit Iran, which involved banks facilitating settlement of international trade that did not have business in the sanctioned nation.
Bank shares were the top gainer in early trades with Bank of Baroda up over 4%.
RIL, HDFC twins, M&M, Infosys among the top losers for the day.
The corporate sector does not care from where the money is coming.
An action on the rate front is unlikely to figure in Rajan's plan for the moment.
Macro and micro environment are becoming more challenging.
The US FOMC concludes its two-day meeting today while the Bank of Japan will start its two-day meeting today.
Chances of a rate cut in April improve if core inflation continues to ease, growth falling below the projected 7.2% for FY19 and if the global trade slowdown exacerbates.
'At the heart of the strategic relationship between our countries are economic ties.'
The year 2022 saw the Reserve Bank of India (RBI) start acting on the policy repo rate after a gap of two years. The six-member monetary policy committee of the RBI reduced interest rate sharply - by 115 bps - when Covid-19 struck in 2020. In March 2020, days after the nationwide lockdown was announced, MPC in an unscheduled meeting reduced the repo rate by 75 bps, followed by another 40 bps in May. Status quo was maintained for the next two years since the May repo rate hike.
Governor Urjit Patel and his deputies spoke to the media about the central bank's decision to raise the repo rate.
Dismissing the contention that the decline in inflation was on account of the steps taken by the NDA government, Chidambaram said he wanted to know, 'what measures were taken by the government that contributed to decline in inflation rates.'
With the government reducing the net worth for new entities in fuel-marketing space to Rs 250 crore, the market is open for new players like Total, Adani, and Saudi Aramco -- and even supermarkets - to open fuel outlets.
'Devika is a people's person, who simply loves what she does. This reflects in her work; the insights she brings to the table and the way she interacts with people and clients. She has the demeanour of a good captain. Her success is well-deserved.'
New-generation private sector banks such as ICICI, HDFC, Axis, Kotak etcetera owe their existence to the recommendations of the first Narasimham Committee.
There have been several instances of traders dumping fruits and vegetables outside mandis. Or of farmers dumping produce outside their villages or feeding them to their animals.
The central bank can directly print money and finance the government, but it should avoid doing so unless there is absolutely no alternative, former RBI governor D Subbarao on Wednesday said while pointing out that India is 'nowhere' near such a scenario. In an interview with PTI, Subbarao suggested that to deal with the second wave of COVID-19 induced slowdown in the economy, the government can consider Covid bonds as an option to raise borrowing, not in addition to budgeted borrowing, but as a part of that.
