Market analysts and economists expect Reserve Bank of India (RBI) to reduce policy repo rate in its mid-quarter policy review on June 17 considering the fall in inflation and sluggish economic growth. Earlier, RBI said it would take into account falling inflation while deciding on policy initiative in its review next month
Tag: monetary policy
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RBI head to tap all options to ease liquidity strain
Reserve Bank of India (RBI) Governor D Subbarao assured that the central bank would explore all the options available with it to ease liquidity strain in the banking system, including adjusting banksÂ’ cash reserve ratio (CRR) or any other mechanism. He informed, during a post-policy conference call with analysts, that the central bank will not just limit itself to bond
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Banks fail to pass on entire benefit to customers
In the policy statement, Reserve Bank of India (RBI) said banks reduced lending rates on an average by 36 basis points to 12.17 per cent during 2012-13 (up to February). This is compared to a 50 basis points cut in repo rate and 75 basis points reduction in CRR by the RBI in 2012-13
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India Inc not gung ho about policy outcome
Corporate India is not much excited about the 25 basis point reduction in the repo rate by the Reserve Bank of India (RBI) as they feel it to be too less. However, they also agree that the central bank cannot do much the high level of retail inflation and high current account deficit
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Crude oil futures rise in recent sessions
Crude oil futures rose in recent trading sessions in the international market led by optimistic unemployment data from the US. According to data released by the US Labor Department, unemployment in the country declined to 7.5 percent in April 2012 from 7.6 percent in the previous month. This is said to be the lowest unem
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Bankers want RBI to reduce CRR
Bankers urged the Reserve Bank of India (RBI) to reduce the cash reserve ratio (CRR) by 50 basis points in its Annual Policy on May 3. Bankers want the central bank to reduce CRR as such a move would release cash into the system and ease liquidity pressure. CRR is the portion of deposits that banks have to set aside
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Barclays Capital expects RBI to cut rates by 50 bps
Barclays Capital feels that Reserve Bank of India (RBI) may reduce policy repo rate by another 50 basis points by mid 2013 in order to support economic growth. The brokerage interpreted RBI's policy statement on March 19 as being "balanced", and not the hawkish tone that markets have interpreted
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RBI Governor supports moving towards panel structure
Reserve Bank of India Governor Duvvuri Subbarao said India must move towards a monetary policy committee structure. Subbarao said this in reply to a question following a speech at the Bank of Mauritius, which has such a committee in place. The governor said RBI must have more independence in order to have a monetary policy committee
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Banks may not cut lending rates soon
Banks in the country may not be able to cut lending rates soon in response to the 25 basis point reduction in the policy repo rate by the Reserve Bank of India (RBI) in its monetary policy review on Mach 19. Banks may not be able to reduce lending rate because doing so would reduce their net interest margin when deposit rate is high. Banks cannot reduce deposit rate at a time when they are trying to attract more depo
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Some analysts expect RBI to cut policy rate
The slowdown in economic growth and the government's commitment to reign in fiscal deficit may prompt Reserve Bank of India (RBI) to cut policy repo rate by 25 basis points in its monetary policy review in mid-March. The central bank may partly base its decision on the government's efforts to deliver fiscal consolidation as exemplified by the progress in 2012-13 and presented in th