RBI’s nimble and flexible in managing liquidity: Guv

RBI’s nimble and flexible in managing liquidity: Guv

Mumbai: The Reserve Bank of India (RBI) will inject or absorb funds in the banking system in a nimble manner, depending on deficit or surplus conditions, top central bank officials said, adding that when interest rates are the principal tool of monetary policy, liquidity is used to achieve a certain rate. “As (RBI) governor has … Read more

Effective rates now largely higher than repo rate

Effective rates now largely higher than repo rate

Mumbai: The Monetary Policy Committee has not officially raised interest rates for a year, but its novel stance of “focussing on withdrawal of accommodation” has led to much tighter financial conditions than the traditional rate hike stance of “calibrated tightening”, effectively delivering a rate hike without touching the policy rate. An analysis of the weighted … Read more

Wall St Week Ahead: Fed, earnings and economic data to test US stocks at record highs

Wall St Week Ahead: Fed, earnings and economic data to test US stocks at record highs

The U.S. stock market’s strong start to the year faces a major test next week in a stretch packed with big tech earnings, the Federal Reserve’s monetary policy meeting and the closely-watched employment report. The S&P 500 is up nearly 3% since the end of December and stands near record highs, driven in part by … Read more

RBI may not have to drain cash further as core liquidity declines

RBI may not have to drain cash further as core liquidity declines

Mumbai: The Reserve Bank of India need not have to tighten liquidity any further as a metric cited by the central bank has fallen below levels that could stoke inflation, potentially paving the way for Mint Road to effectively deliver a rate cut by letting market rates ease from their current elevated levels. As of … Read more

RBI could defer OMO sales with liquidity deficit at over 4-year highs

RBI could defer OMO sales with liquidity deficit at over 4-year highs

Mumbai: The Reserve Bank of India (RBI) could defer its declared open market bond sale as currency leakage from the banking system during the festival season and its own steps to shield the rupee from excess volatility have pushed liquidity deficit to its highest in more than four years, according to analysts. With net liquidity … Read more

Liquidity in the banking system slips to 6-month low

Liquidity in the banking system slips to 6-month low

Mumbai: Liquidity in the banking system has slipped into its deepest deficit in almost six months, inflating borrowing costs, as outflows due to corporate advance taxes and the Reserve Bank of India’s likely actions to stabilise the rupee have drained lenders of funds. As of September 16, the RBI infused ₹68,785.94 crore into the banking … Read more

MPC Minutes: Excess liquidity on RBI radar

MPC Minutes: Excess liquidity on RBI radar

Mumbai: The Monetary Policy Committee appears prepared to look past the seemingly transitory phase of high inflation stoked by vegetable prices, but steps to reduce liquidity overhang in the banking system are likely to help contain price pressures, minutes of its August 8-10 meeting showed. “Given the likely short-term nature of the vegetable price shocks, … Read more

Up 50% YTD, this smallcap stock announces 1:1 bonus issue to investors

Up 50% YTD, this smallcap stock announces 1:1 bonus issue to investors

The Board of Kamdhenu Ventures has approved a proposal to issue bonus shares to its investors in the proportion of 1:1, which means, for every share investors hold, they will get an additional share. “The Board has recommended an issue of 1 bonus equity share (fully paid‐up) of Rs 5 each for every 1 existing … Read more

Rise in local bond yields pushes up forward premia

Rise in local bond yields pushes up forward premia

Mumbai: Dollar-rupee forward premium rates, which represent the interest rate differential between the US and India, have jumped over the past week due to hardening domestic bond yields and the Reserve Bank of India’s (RBI) efforts to manage the impact of hefty foreign inflows on liquidity and the local monetary unit that already faces stiff … Read more

Monetary tightening behind us; liquidity to remain key focus for RBI

Monetary tightening behind us; liquidity to remain key focus for RBI

After the RBI MPC paused monetary tightening in April 2023, although attempting to reinforce that the pivot is way off, the markets are bracing for the onset of the rate cuts sooner rather than later. The softer than expected inflation (particularly the recent moderation seen in the seasonally adjusted core inflation), above 1% real policy … Read more