RBI unlikely to change interest rates

RBI unlikely to change interest rates

Mumbai: RBI is likely to keep interest rates unchanged after its monetary policy review this week as it battles inflation, said respondents in an ET poll, but some of them said a fiscally prudent interim budget and signs of global monetary easing may prompt the central bank to soften its communication on tight liquidity conditions … Read more

Gold firms as US bond yields slip with focus on Middle East

Gold firms as US bond yields slip with focus on Middle East

Gold prices climbed on Wednesday on softer U.S. Treasury yields, but lacked impetus to move higher as bullion’s safe-haven demand showed signs of fatigue after global leaders sought to prevent the Israel-Hamas war from spreading. FUNDAMENTALS * Spot gold gained 0.2% to $1,974.29 per ounce by 0104 GMT, having declined in the previous two sessions … Read more

Term premium at 12-year high pushing up borrowing costs

Term premium at 12-year high pushing up borrowing costs

Mumbai: The Reserve Bank of India’s status quo on interest rate is becoming increasingly irrelevant, with the term premia – the difference between the policy repo rate and the yield on long-term benchmark bonds – rising to a 12-year high. The premium is nearly 3%, the highest since 2010. This is pushing up the borrowing … Read more

View: Dividing central bankers into hawks and doves misses the big picture

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Central bankers have long been categorized as hawks, who prefer higher borrowing costs to keep a lid on inflation, or doves, who favor lower rates to juice growth. In normal times, these depictions help investors and observers know roughly what to expect policy-wise. But these are far from normal times, and such caricatures are more … Read more