Mumbai: Banks are likely to make representations to the Reserve Bank of India (RBI) on sustained liquidity drainage that has pushed up funding costs for lenders despite unchanged policy rates for nearly a year. Liquidity has steadily declined with the central bank repeatedly stressing the primacy of maintaining price stability as Indian voters get ready … Read more
Mumbai: The Reserve Bank will opt for a larger, 0.50 per cent, hike in key rates at its next monetary policy review in June to protect medium term economic stability in face of the uncomfortable inflation situation, a British brokerage said on Thursday. The central bank will likely revise its inflation estimate to 6.2-6.5 per … Read more
Despite spiralling inflation, the Reserve Bank is likely to hold all key rates and retain the accommodative stance at the forthcoming policy review later this week, a Wall Street brokerage has said. Bank of America Securities India in a pre-policy note on Monday said it expects the RBI-MPC to stay on hold on all rates … Read more
The Reserve Bank of India raised inflation forecasts on the back of higher oil and other raw materials while it maintained the growth forecast at 9.5% for FY22 despite anemic investment demand. Governor Shaktikanta Das said inflation measured by the consumer price index (CPI) might remain close to the upper tolerance band of 6% up … Read more
Transmission of policy rates through both lending and deposit rates improved since the Reserve Bank introduced external benchmark linked lending rate, according to study by RBI economists. The cumulative reduction of policy repo rate by 250 basis points (bps- one bps is 0.01 per cent) between February 2019 to June 2021 has resulted in 155 … Read more
Policy rates cannot dip below a threshold, beyond which a rate cut could be counter-productive and lead to an economic contraction rather than stimulating it, according to a research report by SBI economists. They further said that lowering policy rates below 3.5% could be counterproductive and recommended an activist fiscal policy going forward. The report … Read more