Finance Minister Pranab Mukherjee on Wednesday asked banks to cut interest rates and provide cheap credit to industry in order to spur economic activity.
Banks may reduce their interest rates.
In policy review meet in June, RBI Governor Raghuram Rajan kept interest rates intact.
In order to boost growth amid some softening of inflation, RBI earlier this month cut the key interest rate by 0.25 per cent. It is scheduled to announce its mid-quarter policy review on June 17.
'As a nation, we create beautiful content and a high volume of it (films) but we are limited by the number of theatres and screen density.' 'You now have a living-room large screen available to showcase that.'
Last week, RBI raised the CRR--amount lenders need to keep with the central bank-- by 75 basis points to suck out Rs 36,000 crore (Rs 360 billion) from the system and cool down inflation.
RBI has, since January, cut its policy rate four times.
Finance Minister Pranab Mukherjee to address RBI's Central Board of Directors on July 11, may discuss the government's borrowing programme.
The government plans to borrow nearly Rs 4,00,000 crore (Rs 4,000 billion) from markets during 2009-10, a rise of about 50 per cent over what it borrowed a year ago, to fund the widening fiscal deficit necessitated after stimulus doses for the economy.
In the second policy review under Governor Shaktikanta Das, the six-member Monetary Policy Committee voted 4:2 in favour of the rate cut.
The cut is being seen as an emergency measure to boost the US economy.
A comprehensive technical framework needed, from which a more convincing policy could be demonstrated
The inflation target of the RBI would be reviewed once every five years.
The automobile sector is considered a good indicator of economic health. It has a very long value chain, from primary materials, like metals, glass and plastic, to value-added high-end electronic components, specialised alloys, and software.
USD-denominated FCNR (B) deposits of maturities of one year and above but less than two years and two years and above but less than three years, have been revised upwards to 4.68 per cent from 4.64 per cent and 4.57 per cent respectively.
As per the Budget estimate, net borrowing by the government in the current fiscal is pegged at a whopping Rs 3,97,957.47 crore (Rs 3,979.57 billion) to fund its widening fiscal deficit projected at 6.8 per cent of GDP this fiscal due to a slew of measures taken to boost the economy, which is facing the impact of financial meltdown.
While existing investments pipelines are on course, newer projects, which are at conceptual stage, may be affected; companies are concerned that high inflation (the wholesale price index is above 12.6 per cent, a 16-year high) and high interest rates would dampen consumer demand growth, Confederation of Indian Industry President K V Kamath said after a meeting of industry leaders with Finance Minister P Chidambaram.
The government on Friday said the rise in inflation to 5.16 per cent will not put pressure on interest rates as there is ample liquidity in the economy and inflation would moderate once fresh sugar and wheat supply arrive.
Experts said that earmarking of funds for public health at par with national security indicates a key policy shift.
The rate of interest will be effective from April 1, 2015.
As yields rise, bond prices fall. Higher yields not only translate into losses for investors, it also pushes up borrowing cost for companies as well as government
Abhishek Sharma shone with both bat and ball as Punjab hammered Puducherry by 54 runs in a Group C encounter of the Syed Mushtaq Ali Trophy , in Hyderabad, on Thursday.
From Rs 73k to over Rs 1.2L between January-December 2025 -- is buying gold in 2026 still sensible?
Retail inflation slipped to 1.54 per cent in September from 2.07 per cent in the preceding month mainly due to subdued prices of food items, including vegetables and pulses, according to government data released on Monday. The consumer price index (CPI) based inflation was 5.49 per cent in September 2024.
'A balanced portfolio mix of domestic and international equity, fixed income, and precious metals is recommended.'
Bonds are debt (loan) instruments with a typical coupon rate (interest rate) and term (time period). The issuer (borrower) is normally a company, a municipality, a large utility or the government itself.
With crude and commodity prices ebbing and the twin deficits under check, the Reserve Bank should have cut the key policy rate to push investments and boost economic growth, India Inc said.
'...but I would not like to put a timeline to it'
Finance Ministry had earlier lowered interest rate to 8.7 per cent for 2015-16.
After effecting two back-to-back 25 basis points rate cuts, Reserve Bank Governor Sanjay Malhotra on Wednesday hinted at another reduction in key policy rate by changing the central bank's monetary stance to 'accomodative' from 'neutral', which may further lower EMIs for consumers.
'Maintain a balanced approach with a preference for short-to medium-duration funds.'
It's just not stocks and mutual funds that help you make good profits in the long run, says Sharath Komarraju, author of 'Money Wise' which, he says, is 'Aam Aadmi's guide to wealth and Financial Freedom'.
'Revolving credit without full repayment causes interest to outpace repayment capacity, and leads to financial distress.'
Gold prices are likely to remain in a consolidation phase in the near term, but the overall bias will continue to stay positive amid heightened expectations of a US Federal Reserve rate cut in its September policy meeting, analysts said. Traders will closely track US macroeconomic data, such as Q2 GDP, PCE inflation, and speeches from Fed officials, which will provide more insights into the monetary policy stance of the Federal Reserve and the trajectory of the bullion sentiment, they added.
'Our problem is not a budget deficit but a trust deficit. We need to trust our institutions and industries to innovate and lead. That is the way forward for India.'
Higher interest rates in the US do not necessarily coincide with capital outflows.
'This has become a necessity now to kick start the investment cycle'
Among Sensex firms, Maruti, Axis Bank, Larsen & Toubro, ICICI Bank, Bharti Airtel, Infosys, Adani Ports and Hindustan Unilever were the laggards. However, Titan, State Bank of India, Eternal and Trent were among the major gainers.
Those who have binged on credit must spend less, cut discretionary expenses, and focus on repayment.
Avatar: Fire And Ash is visually stunning and emotionally engaging, offering strong performances and thrilling action, notes Syed Firdaus Ashraf.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances