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
Tag: RBI
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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 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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Quote on RBI’s Credit Policy: CRR and repo rates slashed by 0.25%
Finally, we have the rate cut (start of the series of cuts that hopefully will follow over several quarters, influenced by the overall inflation situation and the economy's need to perk up growth rates) which coupled with the lower CRR should provide great relief to Real Estate industry reeling for quite some time now under the burden of huge debts on one side and poor cash flows caused by slowdown in sales.
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Perspective on the Credit Policy
In my opinion, RBI delivered a very balanced policy. As expected, they chose the calibrated path of a 25 bps cut in the Repo and the Reverse Repo rates as they wanted to avoid a repeat of April 2012 when the RBI had cut the Repo rate by 50 bps and then had to pause with surprises creeping in from the inflation side. On the other side, there is a clear acknowledgement from the RBI that demand side activity has remained low, growth has slowed below trend, probably needing the RBI to complement the
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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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RBI suggests alignment of existing debt recast pacts with scheme
The existing bilateral debt recast schemes between banks and some power distribution companies may be aligned with the government-introduced debt restructuring scheme, Reserve Bank of India (RBI) suggested. Last year, lenders entered into a debt restructuring agreement with power distribution firms in Uttar Pradesh, Rajasthan and Haryana — who together owe
Rs 8
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Banks witness faster growth in deposit recently
Deposits of commercial banks expanded by a robust Rs 62,750 crore while credit growth was relatively moderate at Rs 17,380 crore during the first fortnight of the January-March quarter, data from the Reserve Bank of India (RBI) shows. This snaps the trend of credit growth outpacing deposit growth during the October-December 2012 perio
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FII investment cap in bonds raised
The ceiling on investment by foreign institutional investors (FII) in government bonds and corporate bonds has been raised by $5 billion each. The sub-limit of $10 billion for investment by FIIs in G-secs was enhanced by $5 billion, Reserve Bank of India ( RBI) said. The cap on corporate debt other than in the infra
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Panel suggests allowing banks to issue fixed rate bonds
An expert panel suggested Reserve Bank of India (RBI) to allow banks to issue long-term bonds which carry fixed interest rate in order to mop up resources for lending to infrastructure sector. The panel headed by KK Vohra, Chief General Manager, internal debt management department, RBI, suggested that banks can issue long term bonds with minim