The tale of India’s interest rates
The latest repo rate cut marks 128 policy rate actions from the Reserve Bank of India, since April 2001; the repo and reverse repo rate have been tweaked 61 and 55 times each since then.
rate cut
May 2020
April 2020
March 2020
January 2020
December 2019
October 2019
September 2019
The Modi govt’s Coronavirus conundrum
The Narendra Modi government, which is nearing the first full year of its second term, finds itself facing the toughest tightrope walk: the balance between lives and livelihood.
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.
‘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.
RBI measures fail to cheer markets
Both the benchmark indices closed flat after huge rallies in three consecutive days; they ended the week with over 20% gains from the week’s lows.
‘Inflation spike transitory; growth downturn durable’
Notwithstanding headline inflation being at a five-year high of 7.4%, Nomura expects the RBI to extend its pause; but the next policy move is still likely to be a rate cut in Q2 to boost growth.
Mutual funds focussed on debt in 2019
Net equity investments of mutual funds fell over 55%, while their investments in debt rose over 59% compared to 2018.
RBI buys more bonds than it sells in Operation Twist
The central bank bought long-term bonds worth ₹10,000 crore and simultaneously sold short-term papers worth ₹6,825 crore under a special OMO to address liquidity issues.
RBI slashes repo rate by 25 bps to 5.15%
The central bank, according to the policy statement, intends to continue with an accommodative stance as long as it is necessary to revive growth, while ensuring inflation remains within target.
The tax cut party continues at bourses
While equity markets continue to boom, economists warn about likely ‘subject-to’ consequences of the corporate tax cuts announced last Friday.
