The Reserve Bank of India (RBI) will stay away from changing key rates - including the reverse repo rate - this fiscal in the backdrop of Omicron. However, it will continue to shape the rate movements through liquidity market operations. Soumya Kanti Ghosh, group chief economic advisor, State Bank of India, said whether Omicron surge or not, there is not going to be any hike this year. However, the central bank may continue to shape rates through market operations.
After two years of a record low interest-rate regime, Indian corporate houses are experiencing a sharp and abrupt increase in funding costs. With the Reserve Bank of India last month making an unequivocal turn towards policy tightening amid high inflation, firms looking to tap the capital markets for funds are ending up shelling out more. The yield on the benchmark triple-A-rated corporate bonds maturing in three years has climbed 98 basis points (bps) since the policy rate hike in May. It was last at 7.47 per cent, Bloomberg data showed.
Also seen in action for India will be the shuttlers, boxers, the women's hockey team and the table tennis players among others.
In an unprecedented move, the Rajiv Gandhi Khel Ratna, the country's highest sporting award, will be conferred on four athletes this year. The Sports Ministry announced on Monday that Olympic medalists P V Sindhu and Sakshi Malik will be honoured alongside trail-blazing gymnast Dipa Karmakar and ace shooter Jitu Rai.
RTGS is used to transfer large sums, the minimum amount being Rs 2 lakh. This mode is used primarily to facilitate trade and market transactions. The primary beneficiary would be the capital markets.
The bond market is not in a mood to reason with the Reserve Bank of India (RBI) on keeping yields low. The 10-year bond yields continued to rise for the fourth straight session to close at 6.202 per cent from its previous close of 6.135 per cent. The yield was at 6 per cent a week ago. The RBI wants the yields to remain at 6 per cent, but bond dealers say the central bank will have to step up its bond-buying programme.
According to Soumya Kanti Ghosh, chief economic advisor of the State Bank of India group, a 50 bps rate cut is a possibility, but 25 bps is more likely.
Summary of sports events and persons who made news on Wednesday
The main reason was that CPI inflation would likely remain below 4 per cent till July.
Even if RBI partially replaces the stock of the high value notes, RBI will have to incur thousands of crores of rupees in cost, say economists.
Central bank moves to infuse liquidity into bond market to help boost sentiment.
In February, FPIs sold $421 mn in debt; in March they have sold $133 mn so far
A summary of sports events and sports persons, who made news on Monday
Lower inflation, FCNR(B) outflows likely to influence central bank decision
India's squash players wrapped up a historic performance at the Asian Games, clinching an unprecedented men's team gold after the women's side settled for its first ever silver in Incheon on Saturday.
While selling started in April, it has intensified this month, with FPIs pulling out $1.1 billion and $2.5 billion from equities and debt market, respectively
Two unassuming young women saved India the humiliation of returning empty-handed from the Olympics for the first time since Barcelona in 1992 with awe-inspiring performances at Rio.
India's squash players wrapped up a historic performance at the Asian Games, clinching an unprecedented men's team gold after the women's side settled for its first ever silver in Incheon on Saturday.
There are perks for banking with the newest bank in India.
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