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 ...
Rising oil prices big macro worry for Indian economy: Trade body
The Dollar Business Bureau Increasing crude oil prices in the international market has led to an increased risk of volatility in energy prices. With Indian basket of crude oil rising by 11% in rupee terms in the last 8-9 days, volatility in energy prices has re-surfaced as the biggest worry for the Indian industry and policy makers, according to an The Associated Chambers of Commerce of India (ASSOCHAM) report. In rupee terms, prices for the Indian crude basket have shot up by 11% from Rs 3789.86 to Rs 4203.94 per barrel between May 1 and May 7. In dollar terms, the prices have gone up by more than 9% from US$ 60.30 l to US$ 65.81 per barrel. “The ...
India's manufacturing growth slips in April as orders drop
The Dollar Business Bureau India’s manufacturing sector witnessed slower growth during April as companies reduced staffing due to weaker pace of order flows, an HSBC survey said on Monday. At 51.3 in April, down from 52.1 in March, the HSBC India Purchasing Managers’ Index (PMI) pointed to a weaker improvement in operating conditions across the sector. However, new order volumes continued to rise in April, marking an 18-month expansionary sequence, said the report compiled by Markit. The index below 50 point means that the manufacturing sector is contracting. “Despite recording softer rates of expansion, the Indian manufacturing sector held its ground in April, benefitting from ongoing improvements in operating conditions,” said Pollyanna De Lima, Economist at Markit. The survey also highlighted strong ...
