- Monetary Policy highlights: RBI restores CRR, allows online access to government securities marketThe Reserve Bank's Monetary Policy Committee (MPC) voted unanimously to leave the repo rate unchanged at 4 per cent, Governor Shaktikanta Das said while announcing the decisions taken by the panel. Watch.Monetary Policy highlights: RBI restores CRR, allows online access to government securities market
- NBFCs to get funds under on tap TLTRO scheme for incremental lending: RBIIn October last year, the RBI had announced on tap targeted long term repo operations (TLTRO) scheme for banks. It had said to conduct on tap TLTRO with tenors of up to three years for a total amount of up to Rs one lakh crore at a floating rate linked to the policy repo rate. The scheme is available till March 31, 2021.
- RBI Monetary Policy: India’s central bank keeps repo rate unchanged at 4%, maintains 'accommodative' stanceThe Reserve Bank of India kept repo rate unchanged at 4% while maintaining its stance 'accommodative', said RBI Governor Shaktikanta Das on Friday (February 5). RBI's policy decision was broadly in-line with the Street estimates as economists were expecting the central bank to maintain status quo on key policy rates. The reverse repo, the rate at which RBI borrows money from banks, was also kept unchanged at 3.35%. RBI had last reduced policy rates on May 22 last year.RBI Monetary Policy: India’s central bank keeps repo rate unchanged at 4%, maintains 'accommodative' stance
- 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.
- IPOs, RBI policy, auto sales, FII flows among key factors that may guide D-St this truncated weekGoing by the buzz on Dalal Street, here are the top factors that are likely to guide the stock market this week.
- What is a long duration debt fund?Long duration funds or long-term bond funds are debt funds that invest in long-term fixed income instruments. The investment mandate makes them suitable only for long-term investments.
- Next RBI policy meeting on June 3-5The MPC typically meets bi-monthly and comprises of six members.
- RBI hit all the right chords by addressing both immediate and long-term needsThe overall policy announcements should be viewed in the context of focus on growth as the central bank knows very well that the government does not have too much headroom on the fiscal front.
- Status quo! Yet, RBI delivered more than a rate cut, and how!Though the rates were kept unchanged, RBI Governor announced various other measures to improve credit growth in the economy, and to deal with the risk aversion among banks.
- RBI has done more than the market had expectedThe Governor is very focussed on making sure that borrowing programmes happen effectively, sovereign rates remain low and the transmission of that low sovereign rate happens to the real economy, says Jayesh Mehta.
- RBI pushes banks to open purse strings through series of measuresThe RBI which stood pat with the key policy rate at 4% said its focus of liquidity measures will now include revival of activity in specific sectors that have both backward and forward linkages, and multiplier effects on growth.
- 'RBI governor is hitting every ball outside of the stadium'I am a fund manager and by nature I have to be an optimist and second, the data also suggest that it is time to be optimististic, says Nilesh Shah
- Homebuyers get early Diwali gift; housing finance stocks surgeBanks and non-banking financial institutions have been reluctant to provide loans to the real estate sector citing risks amidst the pandemic, while buyers have also remained financially stressed.
- 'Surprised RBI thinks GDP growth can turn positive in Q4'There is still space for 25-50 bps policy easing in the rest of FY21, says Tanvee Gupta Jain.
- RBI Guv unveils his own version of Quantitative Easing to tame yieldsFinancial markets cheered the policy pronouncements with the Bank Nifty climbing 2 percent by noon. The rupee climbed to a monthly high against the US dollar. Yields on 10 year bonds fell to 5.9%.
- Easier housing loans, promise of liquidity - What RBI announcements mean for youA relatively higher inflation is also keeping RBI from further lowering the policy rates. So, if inflation cools off, we can see some more action from the central bank to support the economy.
- Easier housing loans, promise of liquidity - What RBI announcements mean for youA relatively higher inflation is also keeping RBI from further lowering the policy rates. So, if inflation cools off, we can see some more action from the central bank to support the economy.
- How will RBI steps affect market? Analysts broke it down like this"We see the possibility of the further scope of 25-50 basis points cut in repo policy rates," said Amar Ambani, YES Securities
- Highlights of RBI's monetary policy statementFollowing are the highlights of RBI Governor Shaktikanta Das' statement and resolution of the Monetary Policy Committee (MPC).
- Bank, auto, realty stocks mixed after RBI keeps repo rate unchangedThe Nifty Realty index was trading 0.91 per cent down at 217, while the Nifty Auto index was trading 0.14 per cent up at 8195.25 around 10:08AM.
- 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
- 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’.
- Has near-failure in inflation targetting altered the equation for RBI’s money policy?While MPC’s hands seem to be tied at present given the near-failure in meeting its inflation target, one believes RBI is not done with rate cuts.
- 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's newly-constituted MPC to meet for 3-days beginning Wednesday; Decision on October 9On September 28, the RBI had postponed the meeting of the Monetary Policy Committee (MPC), which must have a quorum of four, as the appointment of independent members was delayed.
- RBI monetary policy announcement on October 9RBI had postponed its MPC meeting due to delays in naming new members to the committee.
- 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.
- 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.
- 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."
- 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.
- 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.
- 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.
- 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.
- 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.
- 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 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.