RBI promises liquidity support post Brexit: Rajan
The Dollar Business Bureau Reserve Bank of India (RBI) Governor Raghuram Rajan on Friday said that the bank would provide liquidity in the market and correct any disorderly behaviour of the market, after the UK’s vote to leave the European Union (EU). He said that after early investor concerns over Brexit, investments should return to the country. The RBI Governor expressed his concerns and said that he was worried about currency intervention by countries to create a competitive advantage and requested the central banks around the globe not to cause devaluation of currencies. He said, “Markets around the world are trying to factor the impact of the Brexit vote, leading to sharp changes in financial markets. However, India’s economy has strong fundamentals, ...
More rate cuts on lower inflation, good monsoon
Source: PTI Reserve Bank may further lower the interest rate if inflation continues to ease and the monsoon turns out to be good, Governor Raghuram Rajan has said. "We are looking at inflation. If it continues on a downward path, that would create room (for further rate cuts)," he said. Earlier this month, RBI reduced its policy rate by 0.25% to 6.5% -- its lowest level in more than five years. While this was the first rate cut after a gap of six months, RBI has lowered its rate by 1.5% cumulatively since January 2015. Still, the industry wants further rate cuts from RBI to boost investment. During the same time period, the banks have lowered their own lending rate by 0.25-0.5%. Rajan, ...
