In an interview to a news agency, Finance Minister P Chidambaram remarked that Reserve Bank of India (RBI) would take a decision on reducing policy rate after taking into consideration the fiscal moves of government. On March 19, the central bank would release mid-quarter review of monetary policy. Shifting its focus from infla
Tag: monetary policy
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RBI has limited room for policy easing
In an interview to a leading media, Reserve Bank of India (RBI) Governor D Subbarao remarked that the roon for monetary easing is limited over the next few months because of the outlook for inflation and outlook for growth. He said the central bank would take into account the fiscal consolidation measures and deficit projections by the finance minister in the coming Budget to decide on t
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RBI rate cut
Infrastructure developers and development finance companies cheered the RBI's move to cut policy repo rate in its third quarter review of monetary policy. Infrastructure developers urged banks to pass on the cut in policy rate to borrowers and thereby reduce the cost of funding for infrastructure firms. Also, these companies want the RBI to cut policy rates further in the forthcoming policy reviews.
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SBI, HDFC Bank trim lending rates
India's largest public sector lender State Bank of India (SBI) reduced its base rate to 9.70 per cent from 9.75 per cent with effect from February 4. But the bank kept its deposit rates unchanged as it feels
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RBI hints at more policy easing if inflation, CAD falls
The Reserve Bank of India (RBI) Governor D Subbarao informed reporters that there would be more room for monetary policy actions if inflation eases further and the current account deficit moderates further. He said this after announcing the decision of the RBI to reduce repo rate by 25 basis points and cash reserve ratio (CRR) of scheduled commercial banks by 25 bps in the third quarter monetary policy
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Infra firms welcome RBI rate cut
Infrastructure developers and development finance companies cheered the Reserve Bank of India's (RBI) move to cut policy repo rate in its third quarter review of monetary policy. Infrastructure developers urged banks to pass on the cut in policy rate to borrowers and thereby reduce the cost of funding
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RBI cuts repo rate to support economic growth
Reserve Bank of India (RBI) reduced the policy repo rate by 25 basis points from 8.0 per cent to 7.75 per cent with immediate effect in its third quarter review of monetary policy 2012-13. In order to infuse liquidity into the banking system, the central bank also reduced the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.25 per
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RBI expected to reduce policy rate
Majority of economists and financial market observers expect Reserve Bank of India (RBI) to cut policy repo rate by 25 basis points on January 29 to 7.75 percent. The decline in inflation gauge based on wholesale price index (WPI) and the government's resolve to reduce fiscal deficit increased expectation that the central bank would redu
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Some bankers expect RBI to cut CRR to ease liquidity strain
Some bankers expect Reserve Bank of India either to cut cash reserve ratio (CRR) in the third-quarter monetary-policy review on January 29 or conduct open market operations (OMO) to overcome liquidity crunch in the banking system. It is learnt that slow growth in deposit rate, back-to-back auction of government bonds have strained liquidity in the banking system. According to reports, main
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RBI may cut repo rate in Jan policy; Credit Suisse
According to brokerage firm Credit Suisse, in its monetary policy meeting on January 29, the Reserve Bank of India (RBI) may reduce repo rate by 50 basis points, to 7.5 per cent because of decline in inflation. In a recent research report, Robert Prior-Wandesforde of Credit Suisse said the repo rate may be redu