RBI likely to maintain status quo on Tuesday
Source: PTI With inflation rearing its head again and global crude oil prices inching up, the Reserve Bank is likely to maintain the status quo on interest rates on Tuesday at its bi-monthly monetary policy review for the current fiscal, say experts. Besides, the central bank may wait for the impact of delayed monsoon rains before making the next move. RBI Governor Raghuram Rajan, criticised for following hawkish monetary policy for too long before starting to lower rates, has reduced the benchmark interest rate by 1.5% since January last year. Since then, he has been persuading banks to fully transmit the benefit of the policy rate cut to customers. The customary post-policy press briefing by Rajan, whose current 3-year term as the central bank ...
Indias services industry growth dips in May 2016
The Dollar Business Bureau India’s services industry growth dipped to a six-month low in May due to lack of new orders. The country’s services industry has been facing weak scenarios, with output growth losing momentum for the second straight month. The total growth in manufacturing and services sectors was the lowest since November last year. In the last quarter of financial year 2015-16, India was the world’s fastest growing economy, with its gross domestic product (GDP) growing at a quicker-than-expected pace of 7.9%. Earlier this year, the RBI had cut its policy rate by 0.25% to 6.5%, its first rate cut after six months. It has reduced its policy rate by 1.5% since January15. The industry demands for more rate cuts from the RBI to ...
Despite inflation, RBI to cut rates in Aug: BofA-ML
The Dollar Business Bureau Bank of America Merrill Lynch (BofA-ML) said on Friday that it expects a rate cut by the Reserve Bank of India (RBI) in its policy announcement in August. The data put out by the RBI recently revealed a hike in headline inflation in the month of April it said. BofA-ML said that the reading of 5.4 percent is just a little above 5.3 per cent, as estimated. A poor winter crop (Rabi crop) could sustain inflation between 5 percent and 5.5 percent till the month of June. However, if prices of oil ease down to $39 per barrel, the inflation rate may further go down to less than 5 percent, it said. The Bank ...
RBI cuts repo rate by 25 bps to 6.5%; keeps CRR unchanged
The Dollar Business Bureau The Reserve Bank of India (RBI) has reduced the repo rate, also called the repurchase rate, under the liquidity adjustment facility (LAF) by 25 basis points to 6.50% from its earlier 6.75%. In the first bi-monthly monetary policy review for the financial year 2016-17, RBI Governor Raghuram Rajan on Tuesday said the decision was taken in the backdrop of the current and evolving macroeconomic situation. The Indian banking body also lowered down the minimum daily maintenance of the cash reserve ratio (CRR) by 5 percentage points to 90% from 95%, while leaving the CRR unchanged at 4% of net demand and time liabilities (NTDL). The change will come into effect from April 16, 2016. The reverse repo rate, at which ...
RBI projected to slash interest rate in 25-50% range
The Dollar Business Bureau The Reserve Bank of India (RBI) is expected to slash key interest rates by 0.25% in the backdrop of a subdued inflation, which is projected to remain at a lower side at 4.75% in the quarter ending March 2017, several Indian and global financial institutions have forecasted. The RBI is scheduled to hold its policy review meet on April 5, in which the Indian banking body will make its key announcements. In addition to the cut in repo rate to be made next week, the RBI will cut the rate again in September, after assessing the impact of monsoon on domestic food prices. RBI Governor Raghuram Rajan, in one of his policy-easing announcements in September last year, had ...
Indias industrial output grows at 6.4% in August
The Dollar Business Bureau India’s industrial output grew at 6.4% during August this year, riding high on a considerable growth in mining, manufacturing and electricity sectors. During August this year, indices of industrial production for these three sectors stood at 119.4, 185.3 and 194.4 respectively, cloaking corresponding growth rates of 3.8%, 6.9% and 5.6% over August last year. “The cumulative growth in the three sectors during April-August 2015-16 over the corresponding period of 2014-15 has been 1.2%, 4.6% and 3.2% respectively,” said Ministry of Statistics & Programme Implementation in a statement. Industrial production grew at 4.1% during April-August 2015-16 over the same period last year. FICCI Secretary General A Didar Singh attributed its growth to the country’s strong manufacturing sector and ...
India Inc seeks immediate transmission of rate cut
The Dollar Business Bureau Welcoming the RBI’s decision to reduce its lending rate for banks by 0.5%, various trade and industry bodies have asked banks to pass on the benefit to borrowers so as to improve cash flow in the economy. The Reserve Bank of India (RBI) in its fourth bi-monthly monetary policy review on Tuesday reduced the repo rate from 7.25% to 6.75%. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) said the cut in interest rates needs to act as a demand push at the consumer level and should help revive investment cycle, especially in the private sector. “The trouble has been aggravated by a high level of debt in the private sector which makes it onerous ...
