- Bond market rally to continue after RBI policy: Devang ShahWhile RBI MPC maintained status quo on rates as expected, the central bank clearly beat broader expectations with a slew of measures to boost liquidity, said Devang Shah, deputy head - fixed income at Axis Mutual Fund. Shah drew comfort from RBI's focus on growth revival. He believes the room for further rate cut was limited, and the central bank was at the fag end of the rate-cutting cycle. Watch now.Bond market rally to continue after RBI policy: Devang Shah
- Industry, experts say RBI's status quo on policy rates to aid economic recovery"There has been a substantial upgrade to the overall growth forecast for the second half of the current fiscal. This is encouraging but given the stress the economy had faced on account of COVID-19, we anticipate that policy support, both from the RBI and the government, will be required well into the next year," Ficci President Sangita Reddy said.
- Governor Shaktikanta Das wants banks to improve corporate governance and risk standardsIn March this year the regulator imposed a moratorium on Yes Bank and quickly stitched a reconstruction plan with SBI and nine other domestic entities investing in the lender. Likewise, last month the RBI directed a forced merger between troubled Lakshmi Vilas Bank and DBS (India) Bank, wiping out holdings of all equity and tier 2 bond holders.
- ET View: Negative rates as conscious policyThe RBI’s policies on maintaining high liquidity to fuel recovery, keeping a Targeted Long Term Repo window open is most sensible. It is unlikely to be used much, though, considering the oodles of liquidity being created by the RBI’s attempt to keep the exchange rate reasonably stable, even as foreign capital floods in, as confidence returns to mature markets.
- View: RBI’s response during Covid proves its inflation targeting has worked wellBut the key point is that the monetary policy is working, and GoI and RBI need to allow it to continue. What do we mean by ‘functioning quite well’? First, RBI responds to both changes in inflation and changes in the output gap. It balances the two considerations. Thus, it is best characterised as a ‘flexible inflation targeter’, not an ‘inflation nutter’.
- Next RBI policy meeting on June 3-5The MPC typically meets bi-monthly and comprises of six members.
- Monetary policy delay adds to Indian bankers’ long list of problemsThe Reserve Bank of India’s decision to reschedule this week’s interest-rate meeting makes it difficult for lenders to price loans and deposits because they usually track the monetary policy’s outlook for liquidity and interest rates.
- RBI's 'reckless' delay on policy panel holds back recoveryThe Reserve Bank of India deferred its three-day interest-rate meeting due to start Tuesday, without giving any reasons or a new date for its policy decision.
- Rates steady, gold LTV ratio raised, MSME debt restructuring extended: Analysing the key RBI policy announcementsThe Reserve Bank of India on Thursday kept interest rates on hold to contain elevated inflation, even as it allowed banks to restructure some corporate and individual loans as part of efforts to revive the economy that faces its first contraction in more than four decades. There will be separate windows available for the restructuring of loans of small and mid-size enterprises who have been impacted by the COVID-19 pandemic. The central bank also raised the limit of loans that can be availed against gold ornaments and jewellery. Tune in as ET's consulting editor TK Arun shares his views on the key highlights of the RBI policy statement. (Text: PTI)Rates steady, gold LTV ratio raised, MSME debt restructuring extended: Analysing the key RBI policy announcements
- Sensex gains over 150 pts ahead of RBI policy outcome; Nifty tops 11,150Domestic equity benchmark Sensex jumped over 150 points in opening session on Thursday ahead of the Reserve Bank of India's monetary policy outcome. The BSE Sensex was trading 183 points or 0.49 per cent higher at 37,846.33; while the NSE Nifty was up 52.70 points or 0.47 per cent at 11,154.35.Sensex gains over 150 pts ahead of RBI policy outcome; Nifty tops 11,150
- RBI postpones MPC meeting as external member posts lie vacantIn an unprecedented move, the RBI today announced that the monetary policy that was scheduled to take place from Sep 29- Oct 1 will be rescheduled. The move comes in light of the pending announcements by the government for the selection of the 3 external members. The rate setting panel has 6 members including the RBI Governor, Deputy Governor and Executive Director along with three external representatives. The 4 year tenure of external members Chetan Ghate, Pami Dua and Ravindra Dholakia recently ended. Economic Affairs Secretary Tarun Bajaj led panel was tasked with looking for new external members.RBI postpones MPC meeting as external member posts lie vacant
- RBI says MPC meet rescheduled; new dates to be announced soonThe central bank, however, did not provide any reason for such rescheduling.
- RBI likely to maintain status quo in upcoming policy reviewRBI governor Shaktikanta Das had earlier said although there was headroom for further monetary policy action, it was important to keep "our arsenal dry and use it judiciously."
- RBI policy, Q1 earnings, auto sales, dollar among key factors that may guide Dalal Street this weekHere are some of the key factors expected to move the market in the week ahead.
- RBI policy post-mortem: Liquidity is okay; what about risk aversion?This is how economists and market analsysts reacted to RBI's move to slash repo rates.
- RBI has not exhausted ammunition to fight situation due to pandemic: Shaktikanta Das"We have not exhausted our policy options, whether it relates to rate cuts or any other aspects of central banking. We have not exhausted our instruments or ammunition," he said.
- Sensex falls 477 points from day's high on profit booking, ends 25 points lower; all eyes on RBI policy outcomeThe continued rapid surge in coronavirus infections also bothered investors. For the seventh day in a row India registered more than 50,000 new Covid-19 cases, taking the total tally past the 19-lakh mark.
- Top debt fund managers react to RBI policyRBI kept the policy rates unchanged in the bi-monthly MPC meet today. Debt mutual fund managers say the move is in line with the market expectations.
- Brokerages still see scope for one more cut in the repo rateSome brokerages see scope for one more rate cut but said the central bank’s focus is likely to be on financial stability measures.
- No extension of loan moratorium, but RBI introduces debt resolution plan for eligible borrowersAnalysts said the step was in the right direction and would cover roughly 50-55 per cent of the loans in the banking system.
- More freedom to banks, further rate cut not ruled out: 10 key takeaways from policy meetRBI gave more freedom to banks to deal with loans while keeping mum on moratorium. The monetary policy committee (MPC) said India’s GDP growth is likely to slip in the red during the fiscal year.
- Monetary Policy: RBI's loan restructuring move to provide breather to real estate“While the sector was looking at a further revision in the policy rate, to boost demand, we appreciate the accommodative stance by the RBI, in the wake of a high rate of inflation which may have necessitated keeping policy rates unchanged,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
- RBI holds rates; What should debt mutual fund investors do?The Reserve Bank of India held its policy rate in its monetary policy review held today in line with market expectations.
- Expect a small calibrated cut from RBI rather than a pause: Siddhartha Sanyal‘Even if the headline print is slightly higher than the RBI’s comfort in the latest print, the pressure for the RBI to deliver more rate cuts is quite strong.’
- We could get a sneak peek of one-time restructuring for banks: Lakshmi IyerIt is going to be a tightrope walk. So there is no one answer to this.
- Sensex rises 200 points ahead of RBI meet outcome; Nifty above 11,150Street analysts are expecting further rate cuts from the Shaktikanta Das-led panel
- Moratorium, growth-inflation puzzle, one-time loan recast: RBI's 3 big dilemmas today"Rate cuts so far have had little impact on demand stimulation or growth," said Shanti Ekambaram, Group President for Consumer Banking at Kotak Mahindra Bank.
- RBI move judicious, forget rate cut at least till Oct, say analystsThe central bank has already reduced the repo rate by a total of 115 basis points since February, on top of the 135 basis points in an easing cycle last year, from 6.50 per cent.
- India rate cut is too close to call on CPI risks: Decision guideDas has already led the Monetary Policy Committee in cutting interest rates by 115 basis points this year, taking the repurchase rate down to 4%, the lowest since it was introduced in 2000.
- Another rate cut from RBI, or could it get more creative?One of the key reasons why this is likely to get debated is the recent CPI data (consumer inflation).
- RBI likely to pause on rate cuts on Aug 6 due to spike in inflationThe general expectation is that the rise in inflation has been due to supply shocks while demand pressures will remain leading to lower inflation by Q4 of FY21.
- RBI likely to leave repo rate unchanged in August policy meet: SBI Report"We believe an August rate cut is unlikely. We believe that the MPC could now well debate what further unconventional policy measures could be resorted to in the current circumstances to ensure financial stability is continued to be addressed," an SBI research report- Ecowrap said.
- Rupee ends flat ahead of RBI policy outcomeThe dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.07 per cent to 97.79.
- RBI Policy Push: Bond yields dip 25 bps on shorter maturitiesThe Reserve Bank of India on Thursday said it would conduct long-term repo operations, whereby it would inject money into the banking system at the policy repurchase rate for one and three years.
- Short-term yield drops 17 bps after RBI policyFour-year sovereign bonds are now yielding 6.07 percent dropping about 14 basis points since Wednesday.
- RBI policy review: MPC keeps repo rate unchanged at 5.15%With economy showing visible signs of green shoots, RBI decided to focus on taming inflation.
- Stock market update: Realty stocks mixed ahead of RBI's policy outcomeThe Nifty Realty index was trading 0.12 per cent down at 326.
- Share market update: Auto stocks up ahead of RBI's policy outcomeThe Nifty Auto index was trading 0.55 per cent up at 8176.05 .
- RBI keeps repo rate unchanged at 5.15% amid accelerating inflationThe six-member monetary policy committee (MPC) on Thursday decided to keep its short-term lending rate -- repo rate rate -- unchanged at 5.15 per cent in the sixth bimonthly policy review of the ongoing financial year. The central bank's Monetary Policy Committee (MPC) decided to leave the key repo rate unchanged at 5.15% and the reverse repo rate at 4.9%.RBI keeps repo rate unchanged at 5.15% amid accelerating inflation
- RBI to infuse Rs 3.74 lakh cr liquidity into financial systemReserve Bank Governor Shaktikanta Das on Friday said about Rs 3.74 lakh crore liquidity on aggregate basis will be infused into the financial system to deal with the COVID-19 pandemic.RBI to infuse Rs 3.74 lakh cr liquidity into financial system
- Sensex vaults 1,000 points on hopes of RBI policy measures, Nifty nears 9,000India VIX, the measure of volatility in the market, dropped further 4.8 per cent to 68.09.
- Debt mutual fund managers react to RBI policyThe repo rate now stands at 5.15 per cent, the lowest since March 2010.
- ET Explains: What's making the pass-through of RBI's policy decisions stickyThe issue of lack of monetary transmission hasn't cropped up suddenly and is something that has been a matter of concern for the RBI in ensuring the pass-through of its policy decisions. The matter snowballed in the last few months after the RBI observed that the effects of its rate cuts are not being felt in terms of interest rates coming down.
- RBI policy surprise: Should you change your mutual fund strategy?RBI today surprised everyone by keeping the policy rates unchanged, contrary to expectations of 15-25 bps cut.
- Stock market update: Realty stocks rise ahead of RBI's policy outcomeThe Nifty Realty index was trading 0.47 per cent up at 286.70.
- Share market update: Auto stocks up ahead of RBI's policy outcomeThe Nifty Auto index was trading 0.28 per cent up at 8019.2 .
- RBI in pause mode, but Das keeps rate cut hopes alive: 10 key takeawaysThe monetary policy committee recognised that there is policy space available for future action.
- 3 reasons why the wait for more RBI rate cuts may not end todayChetan Ghate noted that the counter-cyclical money policy had been ineffective.
- RBI keeps repo rate unchanged at 5.15%, stance remains accommodativeThe central bank slashed FY20 real GDP growth projection to 5% from 6.1%.
- RBI & govt going for a calibrated approach as Covid situation extremely uncertain: Sanjeev Sanyal‘We are more than willing to do what is necessary but it needs to be targeted in the right place’
- Extension of loan moratorium won’t solve banks’ problem: Ajay Srivastava‘RBI has ignored the restructuring problem and moved ahead with minor tweaking of just three months’
- RBI should allow one-time loan restructuring for worst-hit sectors: Keki Mistry‘Hospitality, airline, hotels and real estate are sectors where a lot of jobs get created’
- Reduced rates and govt credit guarantee to persuade more banks to lend: Mythili Bhusnurmath‘Government will ensure that public sector banks at least fall in line’
- Zero growth, credit freeze, price rise, demand squeeze… RBI report shows economy in a tight spotThe silver lining, if any, comes from the agriculture sector, says RBI.