Despite the slowdown in the economy and decline in wholesale price index (WPI)-based inflation, Reserve Bank of India (RBI) refrained from reducing policy repo rate in its first quarter review of monetary policy on July 30. The central bank kept key policy rate unchanged at 7.25 per cent and the Cash Reserve Ratio (CRR) at 4 per cen
Tag: monetary policy
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RBI to restore stability in currency mkt on priority
In its a macroeconomic report, Reserve Bank of India (RBI) said the priority for monetary policy now is to restore stability in the currency market so that macro-financial conditions remain supportive of growth. RBI said global currency market movements in June-July 2013 prompted a re-calibration of monetary policy. The report, which was released a day before the first quarter monetary policy review of RBI, shows the central bank
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RBI steps help stabilise rupee exchange rate
The recent measures taken by Reserve Bank of India (RBI) has some effect on stabilising rupee exchange rate against dollar. The central bank took some measures in order to make the domestic currency much costlier. In recent trading session, rupee-dollar exchange rate is hovering in a 58.80 to 59.20 range. Some sources hinted that foreign banks were seen selling the doll
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Cost of funds for realty firms may rise
Reserve Bank of India's recent measures to contain depreciation of rupee against dollar may raise cost of borrowing for developers and affect their ability to service debt, industry players feel. It may be recalled that the central bank limited the daily borrowing of banks under its liquidity adjustment window
to 0.5 per cent of their net deposits against 1 per cent earli
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Indian economy may grow slower than expected
Some rating agencies and brokerages reduced the economic growth forecast for 2013-14 owing to the liquidity tightening steps taken by Reserve Bank of India (RBI). For instance, rating agency ICRA lowered its growth forecast to the range of 5.4-5.6 percent from 5.8-6 percent
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Analysts comment on RBI’s CRR measure
Some market analysts feel that the recent step by Reserve Bank of India to hike daily average CRR requirement of banks is akin to a CRR hike. It may be recalled that recently the central bank mandated banks to maintain higher average CRR (cash reserve ratio) of 99 per cent of the requirement on daily basis as against the earlier 70 per cent. CRR is portion of de
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Banks may not raise rates despite RBI move
Even as some analysts are reading the recent steps by the Reserve Bank of India (RBI) to stem depreciation of rupee as monetary tightening, several banks are thinking otherwise. In order to curb speculative position in foreign exchange market and also to promote investment in rupee debt instruments, RBI hiked the rate on borrowing from marg
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Minister clarifies on RBI steps to contain rupee weakness
Finance Minister P Chidambaram clarified that the recent measures of Reserve Bank of India (RBI) to contain depreciation of rupee has nothing to do with upcoming monetary policy review on July 30. The central bank would release the first quarter monetary policy review 2013-14 on July 30. His clarification comes after analysts interpreted the RBI's recent move to raise interest rate on loan throu
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Economic growth may take a hit from RBI steps; experts
Several brokerages and economists expect the Indian economy to grow at a lower pace in 2013-14 than what was anticipated earlier because of the recent measures by Reserve Bank of India (RBI) to combat depreciation of rupee. Economists and brokerages feel that RBI's recent measures to control rupee weakness may impede growth
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RBI tightens trading norms to curb volatility in currency mkt
In a bid to curb volatility in the currency market, Reserve Bank of India (RBI) prohibited banks from taking proprietary position in the currency futures and exchange-traded currency options market. This effectively restricts them to transact only on behalf of clients. Banks carry out currency trading on behalf of their clients while they have a separate desk to trade in the foreign exchange market of their own. The latter is