Mumbai: Softening headline inflation alone will no longer be enough to spur the Reserve Bank of India to cut interest rates at a time when it faces other pressing challenges such as a record low rupee and the risk of potentially destabilising capital outflows.
The RBI is due to review monetary policy on Monday, facing the same strains erupting across much of Asia as financial markets are looking shaky even as policymakers continue to struggle with cooling economic growth.
Yet India faces its own unique challenges, given consumer inflation remains elevated while a current account deficit that hit a record high of 6.7 per cent in the October-December quarter continues to weigh on the rupee.
That is bound to make traditionally cautious RBI even more reluctant to cut the repo rate again after easing in each of its three previous reviews. "They (the RBI) have their eyes set on multiple goalposts," said Radhika Rao, economist with DBS Bank in Singapore, while citing other factors such as the government's fiscal deficits. "The combination of these factors lower the odds for a rate cut on Monday."...
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09:01 AM, Jun 17, 2013
New Delhi: Encouraged by the declining trend in inflation, the Finance Ministry on Tuesday made a case for further rate cut by the Reserve Bank to boost sagging growth. "I think we need to look at statement made by RBI Governor during the last policy review where he had stated that RBI is closely monitoring inflation figures and if there is dramatic change in inflation figures then RBI will take...
03:41 PM, May 14, 2013
Mumbai: Sticking to its cautious stance, the Reserve Bank on Friday cut the key interest rate by just 0.25 per cent to 7.25 per cent and kept the liquidity enhancing cash reserve requirement unchanged, disappointing the industry and stock market. The RBI in its annual monetary policy statement said there would be modest improvement in the country's economic growth to 5.7 per cent in the current fiscal, as against the...
12:38 PM, May 03, 2013
Mumbai: The Reserve Bank of India (RBI) on Thursday warned of "very limited" space for further easing of monetary policy this fiscal year, striking a hawkish tone a day before it was expected to cut interest rates by 25 basis points for the third time in 2013. The central bank's cautious language in its report on macroeconomic and monetary developments could dent rising market hopes for RBI Governor Duvvuri Subbarao...
08:25 AM, May 03, 2013
New Delhi: The Reserve Bank of India is likely to cut rates by 0.25 per cent in its monetary policy review on May 3, driven by falling inflation levels and recent declines in the prices of oil, gold, and the trade deficit, according to a Barclays report. "We expect the central bank to cut rates 50 bp (0.50 per cent) by mid- 2013," Barclays said, adding that RBI is likely...
11:45 AM, Apr 28, 2013
Reserve Bank on Thursday notified 0.1 per cent reduction each in interest rates on Public Provident Fund (PPF) and Senior Citizen Savings Scheme (SCSS) to be effective from the fiscal beginning April 1, 2013. The rate of interest on PPF has been lowered from 8.8 per cent to 8.7 per cent with effect from April 1, 2013, RBI said in a notification. The rate of interest on 5 year SCSS...
06:51 PM, Mar 28, 2013
Is the Income Tax surcharge on the super-rich the right way? Meera Sanyal, Country Executive India, Royal Bank of Scotland Group (RBS Group), joined IBNLive readers for an interaction on the issue. ...
06:10 PM, Mar 01, 2013
New Tata Motors Ltd is the best performer among Sensex stocks in 2012, helped by hopes for a turnaround in the performance of luxury unit Jaguar Land Rover. Infosys Ltd earns the worst performer status among blue chips, given the persistent concerns about global demand for software services. GAIL, down over 9 per cent and Bharti Airtel, down 7 per cent, are among other losers. ...
03:14 PM, Dec 29, 2012
Mumbai: The Reserve Bank of India on Tuesday left policy interest rates unchanged as expected on Tuesday, ignoring the growing clamour from business and politicians to lower them, reiterating its October guidance of further policy easing in the March quarter as it shifts its focus towards boosting growth. The Reserve Bank also kept the cash reserve ratio (CRR) unchanged at 4.25 per cent, its lowest since 1974. "In view of...
11:15 AM, Dec 18, 2012
Mumbai: The Reserve Bank of India (RBI) is expected to keep interest rates unchanged on Tuesday, according to a Reuters poll, with respondents split over whether it will cut the cash reserve ratio (CRR) for banks. The RBI has left rates on hold since a 50 basis point cut in April, and expectations for a further cut have been pushed from December into the first quarter of 2013 following guidance...
12:49 AM, Dec 18, 2012
All eyes are on the Reserve Bank of India on Tuesday as it reviews its credit policy. It is up against stubborn inflation. Will we see a cut in interest rates? CNBC-TV18's banking editor Lata Venketesh tells us what to expect. ...
09:30 AM, Oct 30, 2012
Mumbai: State Bank chairman Pratip Chaudhuri on Wednesday said he expects the Reserve Bank to leave the key policy rates unchanged, but sees a 100 basis points reduction in the cash reserve requirements (CRR) on September 17, which can help banks trim base rates. The monetary authority is expected to take call on the interest rate regime on September 17 at mid-quarter review, and it is expected that Governor D...
01:46 AM, Sep 06, 2012
Ahmedabad: Stating that rising prices should have been controlled faster, RBI Deputy Governor KC Chakrabarty on Saturday said interest rate will be reduced as and when inflation comes down. "As and when inflation rate comes down, interest rates will come down...." he said on the sidelines of an event here. "Our policy rate was 3.5 per cent in 2008. Then inflation went up to 10 per cent, we should have...
03:21 AM, Sep 02, 2012
New Delhi: In a bid to revive investment across the board, Finance Minister P Chidambaram on Saturday asked banks to cut interest rates and keep EMIs at affordable levels to encourage sale of consumer durables that will restart the engine of manufacturing. After a review meeting with the chiefs of public sector banks against the backdrop of slowdown in the economy, he also announced rescheduling of farm loans in drought...
08:29 PM, Aug 18, 2012
Bhubaneswar: Amid widespread demand for a reduction in interest rates by banks, RBI on Saturday said rate cut cannot be predicted at this moment. "You cannot say when the rate cut will come. Wait for our September policy," RBI Deputy Governor HR Khan said on the sidelines of a function organised by the Institute of Chartered Accountants of India (ICAI). The Reserve Bank is scheduled to review its monetary policy...
07:18 PM, Aug 18, 2012
New Delhi: State Bank of India on Wednesday slashed lending rates on car and home loans by up to 0.5 per cent, a day after one per cent cut in SLR by the Reserve Bank. SBI has reduced interest rate on home loans of up to Rs 30 lakh to 10.25 per cent from existing 10.50 per cent (after 0.25 per cent concession over the card rate), a senior bank...
09:14 PM, Aug 01, 2012
Mumbai: The Reserve Bank of India has scope to cut interest rates during this calendar year, Governor Duvvuri Subbarao said in a news conference after the central bank's policy review, though he declined to elaborate further. Subbarao said fiscal measures from the government would not necessarily prompt the central bank to take monetary policy action. Earlier on Tuesday, the RBI left key policy rates unchanged, citing persistent inflationary pressures. ...
05:29 AM, Aug 01, 2012
The Reserve Bank of India kept key policy rates unchanged in its April-June quarter monetary policy on Tuesday. ...
01:00 PM, Jul 31, 2012
New Delhi: The Reserve Bank of India (RBI) in its April-June quarter monetary policy on Tuesday left the key policy rates unchanged. However, it has cut the statutory liquidity ratio (SLR) to 23 per cent from 24 per cent earlier. This policy action was by and large in-line with CNBC-TV18 poll. Now, the repo rate or the rate at which banks borrow from RBI remained at 8 per cent while...
11:11 AM, Jul 31, 2012
Mumbai: Country's largest lender SBI has cut interest rate on loans to exporters by 0.5 per cent within days of the Reserve Bank increasing the export refinancing limits of banks. "SBI has cut interest rates for exporters by 50 basis points effective last Saturday(June 23, 2012). The decision was taken at asset liability committee(Alco) meeting last Saturday," SBI Chairman Pratip Chaudhuri said. Export credit is linked to the bank's base...
02:27 PM, Jun 28, 2012
