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
Tag: RBI
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RBI steps may hit home sales, cement, steel volume growth
In a research note, rating agency CRISIL said new home sales may decline 400 basis points (bps) and volume growth for steel and cement may shrink about 100 bps owing to the liquidity tightening measures of the Reserve Bank of India (RBI). In order to stabilise rupee exchange rate against dollar, RBI raised short-term interest rates and restricted amount that bank
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Foreign exchange reserves declines $0.98 bn to $279.20 bn
For the week ended July 19, India's foreign exchange reserves stood at $279.20 billion, down $0.985 billion, data from Reserve Bank of India (RBI) shows. In the previous reporting week, the total reserves rose $21 million to $280.19 billion. Foreign currency assets, a major component of the forex reserves declined $999 millio
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Banks borrow Rs 50 mn from RBI via MSF
Media reports say that Indian banks borrowed Rs 50 million ($850,340) through the RBI's marginal standing facility (MSF) on July 25, the RBI data showed on July 26. The RBI raised the MSF rate by 200 basis points to 10.25 per cent on July 15, 300 basis points higher than the policy repo rate of 7.25 per cent.
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Priority sector status sought for credit to affordable home developers
Banks have requested Reserve Bank of India (RBI) to allow them to classify loans given to developers of affordable housing projects as priority sector lending. If RBI assigns priority sector tag to such loans, it would encourage developers to build affordable homes owing to availability of funding from banks. Also, it would enab
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RBI wants traders to export 20% of imported gold
In order to reduce the domestic consumption of gold, the Reserve Bank of India (RBI) mandated importers of the yellow metal to export 20 percent of the gold from the arrived consignment. Presently, a very small portion of gold is exported and the above move is expected to boost re-export of gold.
Of the 970 tonnes of gold imported last year, only 70 tonn
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RBI steps may not rein in rupee weakness: economists
Some analysts feel that the recent moves by Reserve Bank of India (RBI) to arrest rupee depreciation may not be effective. It may be recalled that the central bank further tightened rupee liquidity by restricting the borrowing of banks under the daily liquidity adjustment facility (LAF)
to 0.
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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