RBI MEASURES IMPRESS MARKETS
Round II of RBI’s Covid-19 crisis measures was received by the Sensex and the Nifty 50 gaining 1,116 and 331 points each before closing 986 and 273 points higher from the previous day’s close.
monetary policy committee
April 2020
February 2020
‘Markets should start pricing in better times ahead’
Coronavirus could be a catalyst for resetting the agenda of India’s financial market reforms, says Mark Matthews, head of research-Asia, Julius Baer.
The build-up to RBI’s ‘bazooka’
Minutes of RBI’s Monetary Policy Committee meeting highlight that members were divided on the space for future rate cuts.
RBI’s masked growth and inflation forecasts
The central bank has been quiet on its regular growth and inflation forecasts, citing the highly fluid circumstances, but it has given ample hints in its latest Monetary Policy report.
‘Covid-19 hangs over the future, like a spectre’
While directly mum on inflation and growth, the RBI’s latest monetary policy report warns that Covid-19 would impact economic activity in India through lockdowns and slowing global trade and growth.
Global gold ETF inflows surge in March quarter
According to the World Gold Council, global gold-backed ETFs added 298 tonnes during January-March 2020, the highest quarterly addition since 2016.
Eased liquidity may not have takers
With most industries having made a hard stop, the ‘productive on-lending’ that the RBI envisages may remain a pipe dream.
Rate cuts are a matter of ‘when’, not ‘if’
Despite acknowledging that inflation surged above tolerance level and the economy continued to be weak, the central bank’s MPC sees policy space available for future rate action.
RBI stays ‘consistent’ on rate and policy stance
At the last monetary policy meeting of FY20, the central bank kept the interest rate unchanged, with a warning to not read the ‘pause’ continually for its future actions.
Equity markets make a V-shaped recovery
The markets seem to have overcome over Budget blues as the benchmark Sensex rallied over 900 points on Tuesday.
