Monetary

'RBI likely to cut policy rates at its June 17 meeting'

New Delhi: Taking a cue from the continued downward surprises in inflation and sluggish growth indicators, the Reserve Bank of India is likely to go for further monetary easing in its June 17 policy meet, global investment banking majors have said.

The headline wholesale inflation fell to 41-month low in April (4.89 per cent), dropping within the central bank's comfort zone of less than 5 per cent and fuelling market hopes of more monetary easing to revive sagging economic growth.



"We believe the WPI inflation report provides ample room for the RBI to cut policy rates at its June 17 policy meeting," Barclays said in a research note. Barclays further added that "we expect the repo rate to be cut to 7 per cent (another 25 bp cut) by mid-2013. Moreover, we think the likelihood of further rate cuts (another 50bp to 6.50 per cent) in the second half of 2013 has risen significantly"....more    

Highlights of RBI's monetary policy 2013-14

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...  

RBI likely to cut interest rates to prod sputtering economy

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...  

Inflation seen range-bound this fiscal, says RBI

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...  

RBI sees 'very limited' room to ease monetary policy

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...  

Inflation seen range-bound this fiscal year, says RBI

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, RBI 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. It added: "While sluggish global growth may dampen global inflation...  

India to grow at about 5.8 in FY14: IMF

New Delhi: IMF has projected 5.8 per cent economic growth for India in this fiscal 2013-14 and said pace of investment in infrastructure should increase to get back to 8 per cent expansion level. "We are forecasting India to grow at about 5.8 per cent this fiscal (2013-14) and 6.3 per cent in 2014-15. This compares to an average growth rate of 8.7 per cent for the five years prior...  

Indian economy will grow by 6.1 pc this fiscal: World Bank

New Delhi: World Bank on Tuesday scaled down India's growth forecast to 6.1 per cent for the current fiscal from 7 per cent projected six months ago. The decline in the growth forecast is largely due to the decline in agriculture sector which is expected to grow at 2 per cent during 2013-14 against the previous estimate of 2.7 per cent despite normal monsoon projection. However, the multi-lateral funding agency...  

RBI likely to ease policy rate by 0.25 pc: Barclays

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...  

Global economy avoided the worst but still shaky: IMF

Washington: The global economy might have avoided the worst but it is by no means out of the woods, the International Monetary Fund said on Saturday adding that emerging markets face the risk of avoiding potential financial excesses and as such they should rebuild macroeconomic policy space and further strengthen financial regulation and supervision. "Emerging markets face the new risk of avoiding potential financial excesses. They should rebuild macroeconomic policy...  

2G scam: Chidambaram refuses to comment on JPC report

Washington: Finance Minister P Chidambaram on Saturday refused to comment on the JPC draft report which gives him a clean chit in the 2G scam, saying that he has "never been concerned" about the allegations. "I have never been concerned about these allegations. In fact my concern has been the fraction of the media's concern," he told a select group of journalists here. The Joint Parliamentary Committee has given a...  

India likely to improve fiscal situation in 2013: IMF

Washington: At a time when many countries are facing challenges on the fiscal consolidation front, India with its favorable interest rate growth differential has an advantage in addressing deficit concerns in 2013, International Monetary Fund (IMF) said on Tuesday. In its latest edition of annual Fiscal Monitor report, the IMF said there is an improved picture across most of the world in terms of countries getting a handle on their...  

IMF recognises Somalia after 22 years of chaos

Washington: The International Monetary Fund has announced that it is recognising Somalia's new government after a 22-year break in relations with the once-chaotic country, part of a general push by the United States, United Nations and the West toward encouraging rehabilitation there. The US formally recognised the African nation's new government in January the first time the US had recognised a Somali government since 1991, when warlords overthrew longtime dictator...  

Inflation likely to remain stable as recovery strengthens: IMF

Washington: Asserting that inflation is likely to remain stable as the recovery strengthens, the International Monetary Fund has said fears about high inflation should not prevent monetary authorities from pursuing highly accommodative monetary policy. "With long-term inflation expectations firmly anchored, inflation is also likely to remain stable as the recovery strengthens-the dog has been muzzled and is unlikely to bark. Therefore, fears about high inflation should not prevent monetary authorities...  

RBI may ease monetary policy if inflation comes down

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)....  

BRICS promotes unity among emerging economies: Wang Yi

The fifth BRICS summit has promoted unity among major emerging economies and injected fresh impetus into the cooperation mechanism, Chinese Foreign Minister Wang Yi said on Sunday. ...  

BRICS finance ministers agree on a BRICS bank

Finance ministers of Brazil, Russia, India, China and South Africa have agreed on a BRICS bank on the lines of the World Bank and the International on Monetary Fund (IMF) that will address the development needs of emerging and poor economies. ...  

Raghuram Rajan: financial crisis prophet to RBI chief?

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. ...  

Delhi govt gives Rs 1 lakh to woman who gave birth in park

Delhi government, after an intervention by NHRC, extended a monetary relief of Rs one lakh to a homeless women who delivered a baby in a park after being chased and hit by the police. The relief came over a year after the National Human Right Commission took cognisance of the issue on the basis of a complaint enclosing a newspaper report dated February 1, 2011, was made to it, NHRC...  

Room for monetary easing limited, says RBI Governor

The Reserve Bank on Monday said there is a limited scope for easing of monetary policy over the next few months as there is a risk of inflation escalation as well as concerns over fiscal and current account deficits. "There is room for monetary easing over the next few months, but that room is limited because of the outlook for inflation and outlook for growth," RBI Governor D Subbarao told...