Centre's gross mkt borrowing at Rs 63,719 cr
The Government's gross market borrowing rose to Rs 63,719 crore till June 23 this fiscal amid growing feeling that the Reserve Bank of India may raise short term rates or Cash Reserve Ratio to contain inflation.
By PTI |
NEW DELHI: The Government's gross market borrowing rose to Rs 63,719 crore till June 23 this fiscal amid growing feeling that the Reserve Bank of India may raise short term rates or Cash Reserve Ratio to contain inflation.
The net market borrowing, after redemption of securities worth Rs 31,829 crore, stood at Rs 31,890 crore, according to a PNB Gilts report.
During the last fortnight, the Government increased the scheduled auction amount to raise Rs 9,000 crore, which was seen as a measure to suck excess liquidity to contain surging prices.
Inflation rose to 13-month high of 5.24 per cent for the week ended June 10 due to increase in fuel and essential items prices.
RBI has indicated that price situation will acquire greater 'sensitivity' and global factors would play an increased role in the monetary policy.
With RBI aiming to contain inflation in the range of 5-5.5 per cent, market players feel RBI either could hike Repo and Reverse Repo rates by 25 basis points in July review or increase the Cash Reserve Ratio to suck excess liquidity.
PNB Gilts said the outlook for the bond market is extremely cautious.
With such uncertainty prevailing in the market regarding the future RBI or government moves, the bond market players may prefer to stay on the sidelines and wait for more cues from the authorities.
The net market borrowing, after redemption of securities worth Rs 31,829 crore, stood at Rs 31,890 crore, according to a PNB Gilts report.
During the last fortnight, the Government increased the scheduled auction amount to raise Rs 9,000 crore, which was seen as a measure to suck excess liquidity to contain surging prices.
Inflation rose to 13-month high of 5.24 per cent for the week ended June 10 due to increase in fuel and essential items prices.
RBI has indicated that price situation will acquire greater 'sensitivity' and global factors would play an increased role in the monetary policy.
With RBI aiming to contain inflation in the range of 5-5.5 per cent, market players feel RBI either could hike Repo and Reverse Repo rates by 25 basis points in July review or increase the Cash Reserve Ratio to suck excess liquidity.
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PNB Gilts said the outlook for the bond market is extremely cautious.
With such uncertainty prevailing in the market regarding the future RBI or government moves, the bond market players may prefer to stay on the sidelines and wait for more cues from the authorities.
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