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.
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May 2020
April 2020
March 2020
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.
RBI’s FRIDAY BAZOOKA TO BEAT COVID-19 BLUES
A ₹1-lakh crore liquidity window, reduction in reverse repo rate, support for NBFCs, and relaxation of NPA classification norms are ways in which the RBI wants to keep the economic wheel turning.
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.
The pros of raising the FPI limit on debt securities
Enhanced foreign investment limits in debt securities will be a boon for India, more so in the near term, as Covid-19 combating measures will drain government resources.
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.
$27.3-bn of maturing corporate debt in FY21 not a concern: BofA Securities
The amount is just 0.8% and 5.8% of India’s GDP and foreign exchange reserves, respectively. And the maturity profile is reasonably spread out in FY21.
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.
