RBI
Continuing battle against inflation, RBI hikes repo rate by 35 bps
The repo rate, also called the policy rate, is the interest at which RBI lends money to the commercial banks. The RBI Governor Shaktikanta Das, heading the MPC, announced the rate hike and added that the battle against inflation was not over. With this the MPC has increased the repo rate by 225 points this fiscal.
Will RBI get more teeth to regulate PSU banks?
A throwback to this anomaly is when former RBI Governor Urjit Patel in a speech titled 'Banking Regulatory Powers Should Be Ownership Neutral' in March 2018 threw into stark relief that though the RBI is the banking regulator, the powers to regulate PSBs are held by the government.
Takeaways from RBI's MPC meeting can be more than repo rate hike
Economic experts expect the MPC to hike the repo rate by 25-35 basis points (bps) with industry lobby body ASSOCHAM also urging the central bank to do the same. Further it will also be interesting to see whether there will be unanimity amongst the members of the MPC on the decisions taken at the ensuing meeting.
Don't hike repo rate by more than 25-35 bps: Assocham's advice to RBI
Assocham has also requested the RBI to treat retail loans for purchase of electric vehicle (EV) as priority sector lending. According to Assocham, the interest rate hike should be moderate so that the rising cost of borrowing does not have an adverse and disproportionate impact on the nascent economic recovery post the pandemic.
Expert View: Economic growth driving bull market run despite high interest rates
The Reserve Bank of India (RBI) has raised repo rates four times since May and it is expected to hike the key lending rates again on December 7. Though high interest rates help in curbing liquidity to check inflation, it does not necessarily leave a good taste in the mouth for bourses. Higher interest rates translate into a decline in stock market's value.
Don't hike repo rate beyond 25-35 bps, ASSOCHAM urges RBI
ASSOCHAM has also requested the RBI to treat retail loans for purchase of electric vehicle (EV) as priority sector lending. According to ASSOCHAM, the interest rate hike should be moderate so that the rising cost of borrowing does not have an adverse and disproportionate impact on the nascent economic recovery post the pandemic.
RBI's pilot project on digital rupee to be launched on Dec 1
The pilot would cover select locations in closed user group (CUG) comprising participating customers and merchants, a statement issued by RBI said. The ea,-R would be in the form of a digital token that represents legal tender. It would be issued in the same denominations that paper currency and coins are currently issued.
RBI should consider moderating its pace of monetary tightening: CII
Given the headwinds to domestic growth mainly emanating from the global uncertainties, the Reserve Bank of India (RBI) should consider moderating the pace of its monetary tightening from the earlier 50 basis points. This was stated by CII to the RBI regarding expectations on the forthcoming monetary policy. While CII is cognisant of the fact that RBI's interest rate hikes of 190 basis points so far in this fiscal have been warranted to tame inflationary pressures, the corporate sector has now started to feel its adverse impact.
'India's forex reserves dropping below $500 bn would force RBI to hike more aggressively'
In other words, the Reserve Bank of India (RBI) could start to accumulate reserves again should the USD start to weaken. This would keep the rupee underperforming, the report said. The RBI has used close to $100 billion of FX reserves since late 2021 to defend the currency. Such action makes sense as it had been accumulating FX reserves before that and it wants INR stability in order not to import inflation, the report added.
Drop below $500 billion in India's forex reserves would force RBI to hike more aggressively
In other words, the Reserve Bank of India (RBI) could start to accumulate reserves again should the USD start to weaken. This would keep the rupee underperforming, the report said. The RBI has used close to $100 billion of FX reserves since late 2021 to defend the currency. Such action makes sense as it had been accumulating FX reserves before that and it wants INR stability in order not to import inflation, the report added.
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