The second wave of the pandemic took a “grievous toll” on India, but the dented economic activity has started recovering from late-May, Reserve Bank governor Shaktikanta Das said on Thursday. In a first, Das flagged the rising data breaches and cyber attacks as a risk facing the economy, along with others like firming global commodity … Read more
Introduction of a bad bank may help “shape the operations” of the existing asset reconstruction companies (ARCs), an RBI paper said on Monday, noting that a sizable bulk of assets bought by such entities have not been resolved for a long time. The paper, published in the central bank’s monthly bulletin for April, also flagged … Read more
Mumbai: Rising COVID-19 cases may come in handy for the Reserve Bank of India to reiterate its accommodative stance to push growth despite rising inflation and bond yields, when the central bank’s MPC meets to decide on rates next week. A prospect of a lockdown adds to the growth concerns even as there risks of … Read more
Former RBI Deputy Governor Rakesh Mohan on Monday pitched for changing the central bank’s inflation target band of 2-6 per cent, saying inflation will not take off as long as the government is doing proper macroeconomic management. Under the current dispensation, the RBI has been mandated by the government to maintain retail inflation at 4 … Read more
Credit demand is set to accelerate with the rollout of vaccination and the government’s investment thrust, the RBI said in a report. The collapse in loans demand is more due to Covid related issues like lockdown and that would get rectified as unlock trade progresses. “Credit offtake is expected to pick up as the economy … Read more
The Reserve Bank of India‘s recent proposal for tighter regulatory framework for non-banking financial companies may strengthen their balance sheets but will not address their funding and liquidity issues, says a report. Last week, RBI released a discussion paper which proposed a scale-based regulatory approach linked to the systemic risk contribution of shadow lenders. In … Read more
Annual growth in the all-India House Price Index (HPI) continued to moderate and stood at 1.1 per cent in the second quarter of the fiscal as compared to 2.8 per cent expansion in previous quarter, according to data released by the Reserve Bank. The growth in HPI was 3.3 per cent the July-September quarter of … Read more
By Kartik Goyal The central bank didn’t accept any bids for the benchmark 10-year bond at the weekly auction, in another sign that authorities want to keep yields in a tight range. The monetary authority got 276 bids worth 246.4 billion rupees ($3.4 billion), almost triple the amount the Reserve Bank of India had planned … Read more
Mumbai: The Reserve Bank of India (RBI) announced fresh liquidity measures and a relaxation in mark-to-market rules to help calm investor nerves as a sudden spike in yields hit bond markets. It raised the amount of bonds that could be held without providing for losses by 2.5 percentage points, raising the demand for government bonds … Read more
By Saugata BhattacharyaConcerns on persisting, higher-than-expected consumer price index (CPI) inflation will prompt some questions on further easing at the next Monetary Policy Committee’s (MPC) review meeting. But the main concern will remain growth contraction and demand destruction.The balance of probability is that MPC will pause on a further cut (after a sequence of cuts … Read more