RBIs status quo on key rates evokes mixed response
The sixth bi-monthly monetary policy statement 2015-16 also underscored some of the apparent reasons for Indias satisfactory growth rate and projected 7.6% GDP growth rate for the year 2016-17 The Dollar Business Bureau The reverse repo rate under the LAF is unchanged at 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 7.75% Ahead of the Union Budget 2016-17, the Reserve Bank of India (RBI) Governor Raghuram Rajan decided to keep the repo rate and cash reserve ratio unchanged, citing reasons as the current and evolving macroeconomic situation. On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to continue with daily variable rate repos and reverse repos to smooth liquidity, the ...
RBI ignores govt pressure, keeps interest rates unchanged
Source: PTI Rebuffing pressure from the government to reduce cost of borrowing, RBI Governor Raghuram Rajan today kept interest rates unchanged, citing a spike in food prices and banks passing on to consumers only less than half of its previous rate cuts. Rajan, in his third bi-monthly policy of the fiscal, left benchmark lending (repo) rate unchanged at 7.25 per cent as also the cash reserve ratio (CRR) at 4 per cent. The Reserve Bank of India (RBI) has already reduced the policy rate by a total of 75 basis points, or 0.75 per cent, since January, when it embarked on an easing cycle. The banks, however, have passed on only 0.3 per cent to borrowers, Rajan said. "Given that policy ...
Industry bodies urge RBI to cut policy rate
The Dollar Business Bureau The Governor, Reserve Bank of India, Dr. Raghuram Rajan delivering the Annual Day Lecture on “Banking Structure in India: Possibilities and Challenges”, on the occasion of the Annual Day of Competition Commission of India, in New Delhi on May 20, 2014. Source: PIB, Government of India Ahead of the Reserve Bank of India's (RBI) bi-monthly monetary policy review, industry bodies like FICCI and Assocham expect RBI to cut policy rate as inflation is hovering at levels, much below foreseen by the central bank itself and the industry needs a demand trigger for a revival. Dr. Jyotsna Suri, President, FICCI feels reduction in lending rates by financial institutions is the need of the hour, which has also ...
