Search Result for : Interest Rates

The Dollar Business Bureau As growth of country’s industrial production slipped to 3.1% in the month of April, India Inc reiterated its demand for a cut in interest rate by the Reserve Bank of India (RBI), stating that it was imperative to bolster growth as well as consumer demand. Industry body ASSOCHAM said on Monday that the industry has been disappointed by the RBI’s status quo on the interest rates as there was a possibility for a cut in the key policy rate. “It is unfortunate for the industry that while the government has taken steps to revive the demand by implementing reforms, RBI's stance to maintain the status quo has hit the expectations of the industry though there was a room for ...

The Dollar Business Bureau Former Indian Ambassador to the US, Arun Singh, spoke at length about the progression of India-US ties in the first 100 days of Trump's presidency. With the end of April 2017 marking the 100-day milestone of Trump's reign as the leader of the free world, many have expressed dissatisfaction with his rather capricious style of ruling. Be it Trump reneging on his own words or him lacking the wherewithal to get Congress to pass his reforms, his performance so far has been the subject of much public derision. On the other hand, Indian diplomat Arun Singh, who has seen India-US relations enhance during most of Bush's and Obama's tenure, backs the new US administration and sees much promise in its attitude towards India. “As the engagement of the past hundred days ...

The Dollar Business Bureau The producer price inflation of China has increased more than what is estimated in the month of January to near 6-year high on account of a pick-up in steel prices and other raw material prices, adding to estimates that world manufacturing activity is gaining momentum.  China’s consumer inflation also increased more than expected to around three-year high, according to a data released on Tuesday.  Much of the increase in consumer prices was due to higher prices of food and transportation in the wake of a long holiday for Lunar New Year, as per the National Bureau of Statistics.  But mounting pressures of prices in China and several other developed countries have sparked speculations of a stricter monetary policy in 2017, ...

Aamir H Kaki  The demonetisation move of the government, which has led to a cash crunch in the country, is likely to impact the economic activity in the short-term while the growth of GDP next year may decrease. According to a recent report by Ambit Capital, the GDP growth of India is expected to slow down from 6.4% in the first half of this financial year by 0.5% in the second half, with a distinct probability of the growth contracting in the third quarter of this financial year. Based on this The Dollar Business correspondent spoke to Dr Asmi Raza Professor of Economics, University of Delhi intending to know his viewpoint. Dr Raza said, “Due to demonetisation, GDP will definitely slip a little in ...

PTI Raghuram Rajan, whose tenure as the RBI Governor ended this week, hopes the process of cleaning up Indian banks will be finished and the government will continue to prioritise "low inflation".Rajan, 53, who stepped down on September 4 as the Governor of the Reserve Bank of India, said in an interview with the New York Times that he hoped the country would finish "the process of bank cleanup which is underway." He also noted that his tight monetary policy has helped in bringing India's rate of inflation -- currently about 6 per cent -- down to the upper end of the government's target range."I think we've done exactly what was needed," he said adding that the central bank should continue to ...

The Dollar Business Bureau The Reserve Bank of India (RBI) is expected to slash key interest rates by 25 basis points in its upcoming August 9 policy review meet, if pulses price inflation comes down on account of good weather, said Bank of America Merrill Lynch (BofA-ML) in a report. “With good rains, pulses’ sowing for the kharif season has jumped 39% above last year’s sowing. This should pull down pulses prices by 20% and cool CPI inflation to 5.1% by March,” the research note said. Pulses inflation is currently running at 27% on a poor summer rabi crop. The global brokerage firm said the RBI could cut policy reasons on three reasons. First, a good monsoon will reduce agiflation, second, the core-CPI inflation has softened ...

The Dollar Business Bureau In line with the industries’ earlier projections, the Reserve Bank of India (RBI) has kept the key interest rates unchanged, leaving the repo rate, also referred as repurchase rate, at 6.5% and the cash reserve ratio (CRR) of scheduled banks at 4.0%. The Indian banking body, in its second bi-monthly Monetary Policy Statement for the financial year 2016-17, said the decision to maintain the status quo on key rates was taken against the backdrop of current and evolving macroeconomic situation. “Consequently, the reverse repo rate under the LAF will remain unchanged at 6.0%, and the marginal standing facility (MSF) rate and the Bank Rate at 7.0%,” RBI said in its announcement. RBI further said a slight increase in inflation, which ...

The monthly PMI (Purchasing Managers Index) survey showed that the rate of contraction was sharpest in almost seven years since the global financial crisis Source: PTI The Nikkei India Manufacturing PMI, a composite monthly indicator of manufacturing performance, dipped from 50.3 in November to 49.1 in December. In the first contraction in over two years, manufacturing sector output dipped in December to a 28-month low as new orders fell sharply and production took a big hit from heavy rains in Chennai, putting pressure on RBI to keep rates low. Painting an even gloomier picture, the monthly PMI (Purchasing Managers Index) survey showed that the rate of contraction was sharpest in almost seven years since the global financial crisis. The Nikkei India Manufacturing PMI, a ...