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Showing posts with label RBI Watch. Show all posts
Showing posts with label RBI Watch. Show all posts
Wednesday, August 01, 2012
Monday, April 16, 2012
Monday, February 13, 2012
RBI reiterates need for fiscal discipline to boost growth
Fiscal consolidation is key to boosting India's GDP growth and containing inflation, Subir Gokarn, the deputy governor of the Reserve Bank of India (RBI) Dr. Subir Gokarn said on Monday. "We can’t discount the importance of fiscal consolidation contributing to growth. It is not that growth first and then we get fiscal consolidation. They are interrelated," Dr. Gokarn said in New Delhi today. He said that reining in fiscal deficit was doable. India's fiscal deficit during April to December 2011 touched 92.3% of the Government's estimate for the full fiscal year, reinforcing growing fears that the March-end figure will be much higher than the annual projection. The shortfall in the Government's budget stood at Rs. 3.81 trillion, the Controller General of Accounts (CGA) said on its website today. The fiscal deficit was 44.9% of the annual goal in the first nine months of FY11. In February 2011, the Government had budgeted a fiscal deficit of 4.6% of GDP for the fiscal year 2011-12, but many economists see the deficit overshooting by a wide margin due to slowing growth and increased spending. Finance Minister Pranab Mukherjee has himself said that cutting the budget deficit in FY12 will be a serious challenge. Slowing economic growth has hurt tax receipts even as subsidies ballooned and the Government struggled to sell stakes in state-run companies in a falling market. The RBI Governor, Dr. D. Subbarao had also urged the Government to put a cap on the public debt as it would hurt growth. Gokarn today also stressed on the need for raising the productivity of protein-based food items which had witnessed a sharp increase in the recent times. "Drivers of food inflation are really supply demand imbalance. There has been a shift of demand towards protein-based items. We ought to raise the productivity of protein items", he said at an Investor Conference. In its policy statement of January 24, the RBI Governor took a small step towards loosening the monetary policy by cutting the cash reserve ratio (CRR) by 50 basis points to 5.5%. However, he kept the repo rate, at which the RBI lends to banks, unchanged at 8.5%. The reduction in the CRR freed up an additional Rs. 320bn for circulation and thereby eased pressure on the upward movement in bank interest rates. The RBI's latest policy statement lowered the central bank's GDP growth forecast for FY12 to 7% from 7.6%.
Sunday, October 30, 2011
RBI maintains FY12-end inflation estimate of 7%
Keeping in view the domestic demand-supply balance, the global trends in commodity prices and the likely demand scenario, the baseline projection for WPI inflation for March 2012 is kept unchanged at 7%, the Reserve Bank of India (RBI) said on Tuesday after announcing another 25 bps hike in its key lending rate.
Elevated inflationary pressures are expected to ease from December 2011, though uncertainties about sudden adverse developments remain, the central bank said.
RBI deregulates Savings Bank Deposit Rate
The Reserve Bank of India (RBI) on Tuesday decided to deregulate the savings bank deposit interest rate with immediate effect. It is felt that the time is appropriate to move forward and complete the process of deregulation of rupee interest rates, the central bank said in a statement. Banks are free to determine their savings bank deposit interest rate, subject to the following two conditions:
RBI hikes repo rate by 25 bps...Hints at a pause
on Tuesday raised its key lending rate by another quarter percentage point as it continues its fight against stubborn inflation while equally being concerned about slowdown in the Indian economy. The central bank today hiked the repurchase rate, or repo rate (at which it lends to banks) by 25 basis points (bps) to 8.50%. The reverse repo rate (at which the RBI absorbs money from banks) will now stand at 7.50%. The Marginal Standing Facility Rate will now be at 9.50%. The Bank Rate has been retained at 6%t. The Cash Reserve Ratio (CRR) of scheduled banks has been left unchanged at 6% of their net demand and time liabilities (NDTL). The policy actions and the guidance that is given are expected to continue to anchor medium-term inflation expectations on the basis of a credible commitment to low and stable inflation, the RBI said in a statement.
Thursday, October 27, 2011
Sunday, September 18, 2011
Sunday, July 31, 2011
RBI hikes rates by 50 bps to check inflation
The Reserve Bank of India (RBI) on July 26 raised the key policy rates - the repo rate and the reverse repo rate - by a larger-than-anticipated half a percentage point, as it persists with its efforts to tame the inflation monster notwithstanding some moderation in economic growth. So, the repo rate now stands at 8% and the reverse repo rate is at 7%. There has been no change in the Cash Reserve Ratio (CRR), which stands at 6%. The bank rate has been retained at 6%. The Marginal Standing Facility (MSF) rate, determined with a spread of 100 bps above the repo rate, stands recalibrated at 9% with immediate effect.
Thursday, March 10, 2011
Saturday, January 29, 2011
RBI resumes tightening...hikes rates by 25 bps
The Reserve Bank of India (RBI) increased the key policy rates by 25 basis points (bps) each, as the central bank stepped up its efforts to tackle a stubbornly high inflation at the cost of some moderation in economic growth. The repurchase rate (repo rate) was hiked by 25 bps to 6.50%, while the reverse repo rate was also increased by 25 bps to 5.50%. The central bank also extended the 1% leeway in the SLR up to April 8. CRR was left unchanged at 6%. The inflation target for FY11 was increased to 7% from 5.5% earlier while the GDP forecast for the current fiscal year was kept steady at 8.5% with an upward bias.
Wednesday, January 26, 2011
Saturday, January 22, 2011
Friday, November 05, 2010
RBI ups rates again...But hints at a pause
The Reserve Bank of India (RBI) hiked the repurchase rate (repo rate) and the reverse repurchase rate (reverse repo rate) by 25 basis points (bps) each as part of its efforts to rein in spiraling inflation in a fast-growing Indian economy. The repo rate now stands at 6.25% while the reverse repo rate has increased to 5.25%. The bank rate and the cash reserve ratio (CRR) have been left unchanged at 6% each. The RBI left the FY11 GDP growth forecast unchanged at 8.5% while inflation target (based on new WPI series) for the current year has also been kept unchanged at 5.5%. Inflation target as per the old WPI series has been left untouched at 6%.
Monday, September 20, 2010
RBI hikes repo rate by 25 bps; reverse repo by 50 bps
The Reserve Bank of India (RBI) raised its key policy rates by up to 50 basis points (bps) at its mid-quarter monetary policy review as it seeks to contain inflation in a rapidly growing economy. The central bank hiked the repurchase rate (repo rate) by a quarter percentage point to 6% while the reverse repo rate was increased by 50 bps to 5%.
Monday, July 05, 2010
Sunday, July 04, 2010
RBI hikes repo rate, reverse repo rate by 25 bps
The following is the full text of the Monetary Policy and Liquidity Management Measures announced by the Reserve Bank of India (RBI) today.
On an assessment of the current macroeconomic situation, it has been decided to take the following monetary policy measures as a part of the calibrated exit from the expansionary monetary policy:
Friday, July 02, 2010
RBI raises repo, reverse repo rates by 25 bps
The Reserve Bank of India (RBI) today, July 2 raised the short-term lending and borrowing rates by 25 basis points with immediate effect, a move which it aims will help contain inflation.
The move comes weeks ahead of the scheduled policy review by RBI on July 27 and a day after the government announced that food inflation dipped by about a quarter to about 12%.
The central bank raised both, repo and reverse repo rates (the rates at which the RBI lends and borrows short-term funds from commercial banks), by 25 basis points to 5.50 per cent and 4%, respectively.
The move would raise cost of funds for banks and temper demand for loans, and in turn, consumer spending.
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