Tag Archives: RBI

Banks likely to make huge gains on bonds as RBI cuts rates.

savings rates,government bonds

When interest rates fall, bank stocks rise. The Bank Nifty index rose 4 per cent in the month before the Reserve Bank of India’s (RBI’s) meeting on January 29 where it cut the rate at which it lends to banks by 25 basis points or bps. Let’s look at the complex relationship between banks and interest rates and see which

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RBI cuts repo by 25 bps; CRR unchanged.

current bank rate,RBI,Reserve Bank Of India

  The Reserve Bank of India (RBI) on Tuesday cut its key lending rate by a quarter of a percentage point in an attempt to prop up growth in the slowing economy, drawing comfort from wholesale price inflation staying under 7%. The apex bank kept the cash reserve ratio (CRR) unchanged. RBI lowered the repo rate, at which it lends

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“Softening core inflation should spur an easing of monetary policy by the RBI” ~ Poll.

core inflation,RBI,Reuters

  Wholesale prices likely rose at their slowest annual pace in more than three years last month, strengthening chances of a rate cut at the Reserve Bank of India policy meeting next week, according to a Reuters poll of economists. February’s deceleration would be the fifth in a row, bringing inflation closer to RBI’s perceived comfort level of around 5

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RBI & government: A strained relationship.

rbi,reserve bank of india,rbi news

  The Reserve Bank of India (RBI) has made no bones about its view that monetary policy in India has been constrained by the central government’s policies. It has, in numerous policy statements, called for a change in both the quantity and the quality of the fiscal deficit. Its recent publication, titled Report on Currency and Finance, elaborates on the

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