Consequently, the reverse repo rate under the LAF will remain unchanged at 7.5 per cent and the marginal standing facility (MSF) rate at 9.5 per cent.
Amid declining growth and moderating inflation, the Reserve Bank of India is likely to pause hike in interest rate at the mid-quarterly review of the Monetary Policy on Friday.
'For those seeking regular income, these funds provide a steady stream of income through dividends.'
Among the 30 Sensex companies, Mahindra & Mahindra, Power Grid, Sun Pharma, Nestle, UltraTech Cement, NTPC, ITC, ICICI Bank, Titan, Bajaj Finserv, Bharti Airtel, and HDFC Bank were among the biggest gainers. IndusInd Bank, Adani Ports, Tata Steel, Reliance Industries, Axis Bank and Bajaj Finance were among the laggards.
Speaking at a function at Ghaziabad on Monday, State Bank Chairman-cum-Managing Director O P Bhatt said the bank has decided to raise the interest rate by 0.5 per cent on all loans such as home loans and auto loans which are linked to PLR. The revision in PLR came after SBI raised its PLR from 12.25 per cent to 12.75 per cent last week following Reserve Bank's increasing its key short-term lending rate to banks.
'We can hope to see a lot of creation of jobs in the days to come.'
RBI is likely to continue with its tight monetary policy.
Finance Minister P Chidambaram on Friday said the government is confident about managing inflationary pressures despite rising crude oil prices.
With inflation likely to rise further, the Reserve Bank may go in for an another hike in the key policy rates in its fourth quarterly Review, slated to be announced on January 25.
The government on Wednesday said interest rates on post office savings schemes, except the PPF, will remain fixed throughout the term of the scheme.
Banks may reduce their interest rates.
While freeing interest rates on savings bank accounts, the RBI has said that banks will have to offer a uniform interest rate on deposits of up to Rs 100,000.
The government is likely to take a 'favourable' decision on enhancing the interest rate on Employees Provident Fund and the ministries of labour and finance are holding discussions on how to mobilise resources for it, Lok Sabha was informed on Monday
India plans to launch trading of government bond futures within the next two months as part of efforts to deepen its financial markets, according to several sources involved in the discussions with the central bank.
Admitting that hiking the prices og petrol diesel and LPG was a "difficult" decision, Finance Minister P Chidambaram
Investors need to gear up for a possible rise in interest rates (at least in the short-term) and consequently investment decisions have to keep this aspect in mind.
Union Finance minister Pranab Mukherjee said banks have positively responded to his suggestion to reduce credit interest\nrates.
The bank raised the interest rates on Non Resident External rupee deposits of one year to less than 2 years to 3.08 per cent from 2.49 per cent, two years to less than three years to 3.18 per cent from 2.5 per cent and three to five years to 3.45 per cent from 2.81 per cent. Similar hikes have been made in Foreign Currency Non Resident deposits held in dollars, pound sterling, Euro, Australian dollar, Canadian Dollar and Yen.
At nearly 82 per cent of GDP, India's public debt is very high, but the country doesn't face debt sustainability issue on account of high growth rate and higher share of local currency debt, NCAER Director General Poonam Gupta has said. Participating in an event organised by NCAER, Gupta said India's high debt levels are sustainable for now because of higher real or nominal GDP and as most of the debt is held in rupee.
By taking the mutual fund route, investors can take exposure to gilts with small amounts. Over a decade or more, returns from these funds tend to be sound.
The Institute of Economic Growth, an economic think thank, has said that inflation rate may increase in the coming month but would remain within the RBI's target range of 4 to 4.5 per cent for this fiscal. In its latest monthly monitor, IEG said that despite this expected increase in inflation, there could still be a downward pressure on the interest rates in the next few months.
A comprehensive technical framework needed, from which a more convincing policy could be demonstrated
The Bharatiya Janata Party on Monday demanded that the interest rates on Employees' Provident fund contributions be raised to 9.5 per cent to make them commensurate with the rise in bank interest rates.
The Reserve Bank of India's interest rate decision, macroeconomic data and global trends will drive investors' sentiment this week, with markets hoping to continue the positive momentum after ending FY24 on a buoyant note, analysts said. In addition, the trading activity of foreign investors, the rupee-dollar trend and the movement of global oil benchmark Brent crude would also influence trading in equity markets. The 30-share BSE Sensex climbed 14,659.83 points or 24.85 per cent in the 2023-24.
Presenting the Union Budget, Sitharaman announced that the government will partner with the private sector to set up Bharat Small Reactors and in the research and development of small modular reactors.
Real estate developers and home buyers will feel the pinch of higher interest rates, which could slow down home sales. Higher interest will push up monthly installments for home loans for existing as well as new home buyers.
CREDAI Chairman Lalit Jain said a long term status quo on interest rates would not help prospective home buyers.
Retail and corporate borrowers can breathe easy as bankers today said an immediate hike in lending rates is unlikely, although the RBI tightened monetary policy by raising key rates.
Now borrowers will compensate for higher provisioning on personal loans/credit cards.
The EPFO on Friday deferred a decision on interest rate on provident fund deposits for 2010-11 following pressure from trade unions that want rates to be raised to 9.5-10.5 per cent from 8.5 per cent.
Ask rediffGURU and PF expert Milind Vadjikar your insurance, stocks, mutual fund and personal finance-related questions.
'In the case of corporate credit, especially to AAA borrowers, lenders will have to take a fresh look at pricing.'
Experts say you should be certain of living in a city and locality for a long time before purchasing a home.
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