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Steps announced by new RBI Governor Raghuram Rajan could attract $10 billion of forex inflows in the next three months and this could be a material near-term positive for the rupee, which has lost 20 per cent since January, the London-based banking and financial services company said.
Top bankers on Wednesday exuded confidence that Raghuram Govind Rajan, who today took over as the 23rd Governor of the Reserve Bank, has the intellectual prowess to wade through the present difficulties facing the economy and wished him all success for the stint at Mint Road.
EC received the RBI proposal in the first week of this month, soon after the model code of conduct came into force on March 5.
Costlier fruits and vegetables such as onions and tomatoes pushed retail inflation to a nine-month high of 11.24 per cent in November, making it harder for the Reserve Bank to lower interest rates.
Finance Minister expects rate cut by RBI.
Central Statistics Office has come out with GVA to measure growth.
The partially convertible rupee closed at 61.2350/2450 per dollar compared with 61.31/32 on Tuesday.
The reason, he said, was the external environment was weak.
Bankers expect RBI to help them spur lending growth.
As the clean-up has taken hold, loan growth slipped to 10.7 per cent in the last fiscal
'Lower rates are only part of the solution and sometimes not the right solution at all.'
On India achieving higher growth, Rajan said 9 per cent, which is the widely believed potential growth rate of the economy, is still some time away.
Average policy rate over the next three years should be around 7.4%
The Reserve Bank of India (RBI) is likely to take a "more dovish" stance in its upcoming monetary policy review on December 2 and may go in for a cut repo rate in February, according to a British brokerage house report.
In December 2014, it was (-)0.50 per cent.
Based on this screening, the committee may weed out applications that do not meet the eligibility yardstick or the 'fit and proper' criteria for securing a licence.
The RBI plans to increase e-smart facility.
Not only were Urjit and Rajan outsiders, they also hired laterally, bypassing the existing talent, especially in the field of economics
Budget 2015 has blessed the banking sector.
Credible fiscal consolidation has been a consistent pre-condition to easing the monetary policy stance as far as the RBI is concerned.
Private sector output in India expanded for the first time in 8 months in February as slump in the services sector moderated and manufacturing grew at a stronger pace, an HSBC survey said.
The recovery in manufacturing is still likely to prove "protracted" given the lingering structural constraints.
RBI had previously cut repo rate by 0.25 per cent each in January and March.
RBI would get the comfort of meeting its 8 per cent January Consumer Price Index-based inflation target, BofA-ML said, adding that 'we expect the RBI to cut 75 bp in 2015 from February with inflation on course to 6 per cent in January 2016'.
Move to shift powers from RBI without discussions baffles many
Bad loans of PSU banks rose by 28.5 per cent.
RBI expects the growth in the next fiscal to strengthen gradually, notwithstanding the significant headwinds.
A two-year extension at the helm of the RBI still looks a real possibility
After months of denying there was a liquidity problem, Governor Raghuram Rajan has reversed course.
Rajan's exit will neither affect the RBI's de facto independence nor its working.
A reading above 50 denotes expansion while one below means contraction.
The Reserve Bank of India has already reduced the policy rate by a total of 75 basis points, or 0.75 per cent, since January.
Meanwhile, RBI Governor Raghuram Rajan said at the meeting that the central bank brass discussed strengthening the state- level coordination committees so that unauthorised deposit taking can be dealt with in a better way.
Dy Governor notes it's an era of job changes for better.
The committee had eminent people on it and making any allegations like this is 'outlandish', Sitharaman said.
The industry has stepped up its demand for a rate cut
The status quo decision came as a breather as only last week the RBI had pulled up banks for not helping it in monetary policy transmission.
The Reserve Bank had kept policy rate unchanged in its review on April 7.
The RBI, which has been keeping rates at an elevated level citing high inflation, wants it to come down to 6 per cent by January 2016.
RBI's foreign exchange reserves fell $237.5 million.
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