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"....
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10:40 AM, May 19, 2013
Frankfurt: The Reserve Bank of India will take note of falling inflation when discussing potential interest rate cuts, the central bank's Governor Duvvuri Subbarao said on Tuesday, adding he was very happy about the falling inflation. Asked about potential interest rate cuts in light of falling inflation, Subbarao said they would be taken into account and in future central bankers "will take note of softening inflation." The headline wholesale inflation...
04:46 AM, May 15, 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/ New Delhi: Big banks say it will be difficult for them to pass on the benefit to customers even though the Reserve Bank of India (RBI) cut repo rate by 25 basis points on Friday even though the cash reserve ratio was left untouched. The banks say RBI's move is not enough to cut interest rates for customers. The State Bank of India (SBI) said there is not much...
03:03 PM, May 03, 2013
Mumbai: Dashing expectations of an interest rate cut that have risen because of the recent softening in inflation, as well as decline in crude and gold prices, the Reserve Bank of India on Thursday said there is "very limited" space for that in fiscal 2013-14 because of multiple global and domestic risks, notably inflation. A day before its annual monetary policy statement, the bank released the country's macro economic report...
11:10 PM, May 02, 2013
Mumbai: Ahead of the annual monetary policy announcement on Friday, analysts are calling for lower interest rates. "Based on a relatively more benign outlook for inflation and the current account deficit following the recent moderation in commodity prices, as well as the continuing sluggishness in investment activity and domestic consumption sentiment, we expect Reserve Bank to reduce short-term lending rate by 25 bps on Friday," domestic rating agency Icra said....
08:28 PM, May 01, 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
Mumbai: The drop in headline inflation to a 40-month low of 5.96 per cent for March has increased the possibility of a rate cut by the Reserve Bank at its May 3 annual policy, analysts and rating agencies said on Monday. India Ratings said the cooling off in both core and general inflation readings, coupled with fiscal consolidation and reform measures undertaken by Government, will help RBI Governor Duvvuri Subbarao...
07:33 PM, Apr 15, 2013
New Delhi: Expressing disappointment over poor industrial performance, India Inc on Friday pressed for rate cut by the Reserve Bank of India (RBI) to boost production and further revive the economic growth. Industry chamber FICCI said the RBI should intervene and cut interest rates. "The IIP data for February calls for serious attention. It is important that RBI focuses on bringing down interest rates to stimulate investments which will further...
05:32 PM, Apr 12, 2013
Morgan Stanley and HSBC each cut their India's economic growth forecasts for 2013/14 to 6.0 per cent from 6.2 per cent to reflect lower-than-expected growth in the October-December quarter. ...
10:49 AM, Mar 13, 2013
CNBC-TV18's Banking Editor Latha Venkatesh joined IBNLive readers for an interaction on RBI's recent credit policy changes. ...
05:17 PM, Jan 31, 2013
State Bank of India, the country's top lender, has cut its key lending rate, or base rate, by 5 basis points, R Venkatachalam, deputy managing director at the bank, said. The base rate now stands at 9.7 per cent. ...
08:15 PM, Jan 30, 2013
The Reserve Bank of India is widely expected make a modest cut in interest rates later on Tuesday to support an economy set for its slowest growth in a decade, with a deeper cut unlikely due worries over the fiscal and external deficits and inflation. ...
05:11 AM, Jan 29, 2013
The Reserve Bank of India said a sustained commitment to contain fiscal and current account deficits was needed to create room for monetary easing, a day before it is widely expected to cut interest rates for the first time since April. While the near-term risks to a bloating fiscal deficit have waned following the government's recent policies to stick to its fiscal deficit target of 5.3 per cent of GDP,...
06:05 PM, Jan 28, 2013
India's inflation has come off a peak but is still high, Bloomberg quoted the Reserve Bank of India Governor D Subbarao as saying, a comment that is likely to cool expectations for a rate cut later this month. "When growth is slowing down you can stimulate the economy either by monetary easing or by fiscal stimulus, but both monetary and fiscal side have no room for stimulus. So that is...
11:21 AM, Jan 16, 2013
India's headline inflation is likely to have risen in December by less than the central bank projected, and should reinforce hopes for a cut in interest rates in January to boost an economy that is set to post its slowest growth in a decade. Data to be released later on Monday is expected to show the wholesale price index (WPI), India's main inflation gauge, probably rose an annual 7.4 per...
10:07 AM, Jan 14, 2013
The Reserve Bank of India is expected to keep interest rates on hold on Tuesday despite government pressure for a cut, sticking to its guidance that it will not ease monetary policy before early next year as cooling inflation is still too high for comfort. The RBI has kept its key borrowing rate at 8 per cent since April, defying calls from business and politicians to do more to cushion...
09:49 AM, Dec 18, 2012
The RBI left interest rates unchanged on Tuesday but cut the cash reserve ratio for banks and indicated it may ease monetary policy further in the January-March quarter, although inflation remains a near-term concern. While the decision to leave the policy repo rate unchanged at 8.00 per cent. As inflation eases further, there will be an opportunity for monetary policy to act in conjunction with fiscal and other measures to ...
02:21 PM, Oct 30, 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
New Delhi/Mumbai: The government vowed on Monday to rein in the country's hefty fiscal deficit, increasing the pressure on the RBI on the eve of its next policy meeting to cut interest rates for the first time since April. Finance Minister P Chidambaram pledged to nearly halve its fiscal deficit by March 2017 in a bid to avoid a credit rating downgrade and persuade the central bank to lower rates,...
03:21 AM, Oct 30, 2012
