RBI Policies
RBI’s moves to ease bond market pain will see sharp fall in bond yields as the market scrambles to cover its short positions. Ten year government bond yields can fall by 50bps to lRead More
20 Aug 2013
Dr. Raghuram Rajan, a former IMF economist, visiting professor to the World Bank and US Federal Reserve Board and one of the few economists who predicted the 2008 credit crisis wilRead More
06 Aug 2013
Waiting for Godot is a play by the noted Playwright Samuel Becket. The essence of the play is that two characters wait endlessly in vain for a person named Godot to arrive, and theRead More
30 Jul 2013
RBI 30th July 2013 policy review has gained high significance on the back of its actions in the last few days. The central bank has sent confusing signals to the market by first anRead More
23 Jul 2013
RBI cited the market perception of the US Federal Reserve (Fed) tapering off its QE (Quantative Easing) program as the reason for FIIs pulling out over USD 7.5 billion out of IndiaRead More
22 Jul 2013
RBI curtailing liquidity to pull up the Indian Rupee (INR) has caused more pain than gain. The INR gained by one Rupee from levels of Rs 60.20 to the USD to Rs 59.20 while the ten Read More
17 Jul 2013
The Finance Minister, Prime Minister and the RBI Governor have collectively decided to take government bond yields higher in order to curb the volatility in the Indian Rupee (INR).Read More
15 Jul 2013
RBI kept benchmark policy rates unchanged in its policy review today. The guidance provided by the central bank suggest that apart from growth-inflation trajectory the balance of pRead More
17 Jun 2013
RBI’s 25bps repo rate cut in its 3rd May 2013 annual policy statement is likely to spur a bond market rally going forward. Bond markets will start expecting at least one more repo Read More
03 May 2013
The RBI governor Dr. D. Subbarao is saying he is hawkish on rates but his actions suggest that he is dovish on rates. The Central Bank cut the benchmark policy rate, the repo rate Read More
03 May 2013
Bond markets have nothing to look forward except fresh supply of government bonds starting April 2013. RBI has cut repo rate by 25bps as per market expectations but has indicated tRead More
19 Mar 2013
“The headroom for further monetary easing remains quite limited” was enough for the Sensex and Nifty to fall by over 1.5% and for the 8.15% 2022 government bond yield to rise by 6bRead More
19 Mar 2013
RBI released an interesting Table in its third quarter 2012-13 monetary policy review. Table 1 shows that PSU banks have been the worst performers in the NPA front and their capitaRead More
06 Feb 2013
The months of February and March are typically tight liquidity months for the system. Demand for funds goes up across the system as banks; corporates and the government look to balRead More
30 Jan 2013
RBI uses central bank language in its monetary policy communication. The RBI communicates its policy to bankers, economists, analysts, bond traders and fund managers and hence it dRead More
30 Jan 2013
RBI policy actions for fiscal 2012-13 include repo rate cut of 75bps, CRR (Cash Reserve Ratio) cut of 75bps and SLR (Statutory Liquidity Ratio) cut of 100bps. In addition to policyRead More
29 Jan 2013
RBI is widely expected to cut the repo rate by 25bps in its policy review on the 29th of January 2013. The rate cut will be the first in calendar 2013 and the second in nine monthsRead More
22 Jan 2013
RBI has guided for a shift in policy to supporting growth from the earlier policy of containing inflation expectations. The central bank maintained policy rates status quo in its pRead More
18 Dec 2012
RBI made the December 2012 policy review a non event and guided markets for monetary easing starting January 2013. Equity, bond and currency markets will start factoring easing sysRead More
18 Dec 2012
RBI has fresh data to chew on when it goes into its December 2012 mid term policy review. IIP and Export growth were negative for the months of September and October 2012 respectivRead More
16 Nov 2012
