The Reserve Bank of India kept key interest rates steady as widely expected amid persistently high inflation, and after a better-than-expected reading on economic growth
The rupee appreciated by 16 paise to 73.77 against the US dollar in the opening session as the Reserve Bank of India maintained status quo on benchmark interest rate for the third time in a row
Economists say inflation would average above 6 per cent this fiscal, and is unlikely to come down below 5 per cent before March.
As the yield curve is very steep, Bhatia expects returns in the near-term to be driven by demand-supply of bonds rather than prospects of change in repo rates
The TLTRO will be for tenors of up to three years and for a total amount of up to Rs 1 trillion at a floating rate linked to the policy repo rate for banks
The decision to rationalise risk weights woule particularly benefit borrowers of higher value loans
Given inflation pressure, there is no doubt that it would be difficult for the MPC to cut rates in the near-term
The cut-off yield was 4 per cent, which is at par with the policy repo rate
Under the scheme, a resolution plan for personal loans may be invoked till December 31 and will be implemented within 90 days thereafter
The MPC, headed by RBI Governor, is scheduled to meet for three days beginning August 4
The RBI has already cut rates by 1.15 per cent in two moves since the onset of the Covid-19 pandemic in March
In 12 months, bond yields are down 100 bps, against 200-bps cut in repo
HDFC Bank cuts base rate by 55 bps; SBI calls ALCO meeting to take call
Exporters laud timely steps but want direct fiscal support, full package
Since the repo rate has been revised by 115 bps in the last two months, EMIs would fall when banks reset loan rates
Business Standard brings the top headlines of the day
Lenders to face central bank's censure; board meet in May seen leading to fresh measures
The new announcements would help lift home buyer sentiment, kick-starting the demand cycle for mid-range homes and in affordable housing
Consequently, the lender has also reduced interest rates on retail and bulk deposits by between 20 to 100 basis points across various tenors
The three-month moratorium on payments of term loan instalments (EMI) and interest on working capital give much-desired relief, she added