Reserve Bank of India

Post-Easter Session Sees Equities and Aussie Dollar Rise

April 7, 2015

Following the advance in the Dow on Monday, the return of markets that had been closed for Easter saw share prices advance 2.2% in China, 1.3% in Japan, 0.8% in Hong Kong and Indonesia, 0.5% in Australia and 0.4% in Singapore, Taiwan and New Zealand.  European stocks have thus far advanced by 1.5% in Great […] More

Reserve Bank of India Cuts Rates between Scheduled Meetings

March 4, 2015

RBI Governor Rajan released a statement announcing a new monetary policy framework oriented around a single target of 4% CPI inflation give or take two percentage points.  The statement also informed markets about a 25-basis point cut of the RBI repo rate to 7.5%.  A similar cut on January 15 (also not coinciding with a […] More

Reserve Bank of India

February 3, 2015

India’s is one of the central banks that already had cut interest rates this year in response to the disinflationary impact of the price of oil and other key commodities.  See my earlier review of the 25-basis point cut on January 15 following an unscheduled meeting of Reserve Bank of India policymakers.  Today was the […] More

Financial Markets Relieved by Two Developments

February 3, 2015

The new Greek government retreated from talk of a debt write-off and is instead offering a plan to swap its existing debt with new securities.  The plan would give Greece more time to pay off its obligations.  Greek share prices shot up over 8% in response.  The 10-year Greek sovereign debt yields slid two basis […] More

Reserve Bank of India: First Interest Rate Cut since May 2013

January 15, 2015

RBI Governor Rajan has made good on a promise in December’s review that an intra-meeting rate cut was possible in early 2015 if the momentum of inflation, which started to ease after last July, continued in that direction.  The central bank today announced cuts of 25 basis points in the repo rate to 7.75% and […] More

Reserve Bank of India

December 2, 2014

Once again, India’s monetary policy was left unchanged following a scheduled bi-monthly review.  The repo rate, reverse repo, and reserve requirement ratio will remain at 8%, 7% and 4%.  Interest rate hikes had been raised 25 basis points each in September and October 2013 and, most recently, January 2014.  A released statement from Governor Rajan.  […] More

Reserve Bank of India

September 30, 2014

India’s key 8.0% lending rate, a.k.a. the repo, and 7.0% borrowing rate have been at those levels since a policy meeting late last January hiked each by 25 basis points.  For a fourth time, a subsequent meeting has not changed either of those rates nor the 4.0% cash reserve ratio.  The benchmark interest rates had […] More

Reserve Bank of India’s Bi-Monthly Monetary Statement

August 5, 2014

The RBI’s repo rate was left at 8.0%, and the reverse repo rate will stay at 7.0%.  But another 0.5 percentage point cut of the Statutory Liquidity Rate trims such to 22.5%.  The statement released by Governor Rajan observes that “CPI inflation excluding food and fuel decelerated further, extending the decline that began in September […] More

Reserve Bank of India Policy Near Possible Turning Point

June 3, 2014

Repo and reverse repo hikes of 25 basis points each were implemented last September 20, October 30 and January 28.  Policy has since been on hold in terms of rate level with the repo at 8.0% and the reverse repo at 7.0%.  But the just completed bi-monthly review, to boost liquidity, authorizes a reduction of […] More

Steady Dollar as Ezone CPI Report Reinforces Need for ECB Easing

June 3, 2014

The dollar is unchanged against the yen, kiwi and sterling, up by 0.2% versus the loonie and 0.1% relative to the yuan, and down 0.1% overnight relative to the euro, Swiss franc and Australian dollar. Share prices climbed 0.7% in Japan and India, 0.9% in Hong Kong, 0.6% in Indonesia, 0.5% in Taiwan, and 0.3% […] More