The Reserve Bank of India kept interest rates unchanged on Monday after cutting them in each of its previous three policy reviews, warning of upward risks to inflation posed by a falling rupee and increases in food prices.
Monetary and Liquidity Measures
On the basis of an assessment of the current macroeconomic situation, it has been decided to:
- keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4 per cent of their net demand and time liabilities; and...
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11:32 AM, Jun 17, 2013
Mumbai: The Reserve Bank of India kept interest rates unchanged on Monday after cutting them in each of its previous three policy reviews, warning of upward risks to inflation posed by a falling rupee and increases in food prices. The RBI also called for vigilance over global economic uncertainty, citing the risks of a reversal of capital flows from emerging markets. Such outflows, fueled by investor worries that the US...
11:04 AM, Jun 17, 2013
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...
09:01 AM, Jun 17, 2013
Mumbai: Ahead of the mid-quarter review of monetary policy on Monday, the State Bank of India has said if the apex bank cannot reduce CRR rate, which is a must for lending rate cuts by banks, they should pay interest on cash reserves that banks park with the monetary authority. Incidentally, most analysts expect the RBI to hold rates during its mid-quarter monetary policy review. "If a CRR cut cannot...
02:48 AM, Jun 17, 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) is expected to cut its policy interest rate by a quarter point on Friday for the third time this year as it looks to bolster an economy growing at a decade low and takes comfort from easing inflation. While investors are hoping to hear a less-hawkish tone from RBI Governor Duvvuri Subbarao, the RBI in its report on macroeconomic and monetary developments on...
08:37 AM, May 03, 2013
Mumbai: Inflation is likely to be range-bound and stay around the current levels in this financial year as supply-side issues, along with recent price adjustments in fuel prices, will offset the recent gains, the Reserve Bank of India said on Thursday. "Headline inflation in 2013-14 is expected to remain range-bound around the current levels," RBI said in its annual Macroeconomic and Monetary Developments report. "While sluggish global growth may dampen...
08:31 AM, 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
Bangalore: The Reserve Bank of India (RBI) would further ease its monetary policy if inflation comes down, the central bank's governor D Subbarao said Saturday. "We hope that as we go forward, inflation will come down and if that happens, it would be possible for the Reserve Bank to further ease monetary policy," Subbarao asserted at an interactive session of the Federation of Karnataka Chambers of Commerce & Industry (FKCCI)....
11:30 PM, Apr 06, 2013
The man widely expected to be the next Reserve Bank of India (RBI) governor favours clipping the autocratic power of the role and giving more say to a monetary policy committee. Raghuram Rajan, who in 2005 predicted the global financial crisis, also believes that inflation of around 5 per cent is "reasonable" in a developing economy, rejecting the notion of a "new normal" for India of 7-8 per cent. ...
03:16 AM, Mar 16, 2013
Washington: The Federal Reserve launched another aggressive stimulus program on Thursday, saying it will buy $40 billion of mortgage debt per month and continue to purchase assets until the outlook for jobs improves substantially. In a significant shift in the direction of US monetary policy, the Fed has tied its unconventional bond buying directly to economic conditions, a move that is likely to be controversial among central bank critics. "If...
10:32 PM, Sep 13, 2012
Kozhikode: Ahead of its first quarter monetary policy review on July 31, the Reserve Bank on Friday said sacrificing some economic growth is necessary to rein in price rise. "Inflation hurts poorer people much more than it hurts rich people. You cannot control inflation without sacrificing some growth that is inevitable but the sacrifice of growth to manage inflation is only in the short term," RBI governor D Subbarao said...
10:34 PM, Jul 06, 2012
New Delhi: The Indian economy will grow by 6.9 per cent in this financial year (2012-13) notwithstanding problems like policy uncertainties, fiscal deficit and inflation, the World Bank projected on Tuesday, while cautioning that developing nations will have to face tougher times. "India will see growth (measured at factor cost) increasing to 6.9, 7.2 and 7.4 per cent in fiscal years 2012-13, 2013-14 and 2014-15, respectively," the World Bank said...
10:36 PM, Jun 12, 2012
Boston/London: As China's economy cools, some big US and European companies are losing what had been one of their surest growth bets. Caterpillar Inc, 3M Co, United Technologies Corp and ABB Ltd are among the manufacturers that have reported weak performances in China in the first quarter, as economic growth slowed to a near three-year-low. That is making investors nervous, though some Western chief executives predict a return to rapid...
03:45 AM, Apr 30, 2012
Mumbai: In a bid to boost growth, the Reserve Bank of India (RBI), in its annual monetary policy for 2012-13 , has cut the policy rates by 50 basis points. The repo rate now stands at 8 per cent from 8.50 per cent earlier. Similarly, the reverse repo rate is now at 7 per cent from 7.50 per cent earlier. Lauding the central bank, C Rangarajan, chairman of Prime Minister's...
01:12 PM, Apr 17, 2012
Mumbai: The following are the highlights of the Annual Monetary Policy for 2012-13 announced by the Reserve Bank of India (RBI) Governor D Subbarao on Tuesday: * Short term lending rate (repo) lowered by 0.50 per cent to 8 per cent. * Cash reserve ratio retained at 4.75 per cent. * GDP growth for 2012-13 projected at 7.3 per cent. * March-end, 2012-13 inflation expected at 6.5 per cent. *...
12:52 PM, Apr 17, 2012
Mumbai: The Reserve Bank of India (RBI) on Tuesday cut the repo rate by 50 basis points from 8.5 per cent to 8.0 per cent but did not touch the cash reserve ratio, which remains at 4.75 per cent. The cut in the repo rate is an indication that banks could reduce the interest rates on home and car loans. Following is the full text of RBI's Monetary Policy for...
11:35 AM, Apr 17, 2012
New Delhi: Home and car loans may get cheaper as the Reserve Bank of India (RBI) signalled a possible interest rate cut to boost economy at its annual credit policy on Tuesday. The government said on Monday that inflation had slightly eased in March, a day before what is forecast to be the first interest rate cut in three years, but a cautious tone from the Reserve Bank of India...
07:46 AM, Apr 17, 2012
New Delhi: The Reserve Bank of India (RBI) on Tuesday reiterated its concerns on inflation and a widening current account deficit in a meeting with economists a week before its annual monetary policy review, according to two economists who were there. A Reuters poll of 20 economists issued on Tuesday showed the RBI is expected to cut rates for the first time in three years to give a boost to...
02:50 AM, Apr 11, 2012
