| Exiting monetary policy stimulus a challenge: RBI | 10-NOV-09 |
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| The Reserve Bank of India (RBI), which has begun exiting the easy money policy, today said it found supporting growth without compromising financial stability a challenge, even as the government continues to be cautious about ending stimulus. |
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| M Govinda Rao: Timing the exit right | 03-NOV-09 |
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| The expansionary fiscal stance of the last two years cannot continue and an exit strategy will have to be put in place in the forthcoming Budget to ensure fiscal sustainability and greater flexibility in monetary policy operation, and to enhance productivity in public spending and avoid pressure on interest rates. |
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| Lurking dangers | 02-NOV-09 |
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| Even before the dust has settled from last week’s status quo monetary policy announcement, analysts are already recommending and predicting tightening actions by the Reserve Bank of India (RBI) as early as December. Whether circumstances will change so dramatically for the better over the next couple of months is a legitimate question, the answer to which will determine the appropriate timing of any monetary response. As of now, the nature of the response is being seen by many as a largely predictable one — beginning with an increase in the cash reserve ratio and moving fairly quickly on to increases in the benchmark repo and reverse repo rates. But, it is important to point out that these standard responses to steadily increasing inflationary pressures will have to be done in an already complicated environment. |
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| Banking: Profit taking creates value | 29-OCT-09 |
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| The RBI quarterly monetary policy review, which emphasized an ‘exit’ from the expansionary stance, provided a backdrop for a flurry of profit-taking in bank stocks. |
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| Calibrated approach | 29-OCT-09 |
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| The Reserve Bank of India has clearly chosen not to upset the recovery and growth momentum for now by keeping key policy rates unchanged in the second quarter review of the monetary policy for 2009-10. This comes as good news for the corporate sector and industry in general, which has been making gradual strides to get back on the growth path after the most challenging year. |
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| MONETARY POLICY: In 2 minutes | 28-OCT-09 |
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| Monetary measures:
* The bank rate, repo rate, reverse repo rate and CRR unchanged at 6%, 4.75%, 3.25% and 5%, respectively
* SLR raised to 25% of NDTL
* GDP growth target for FY10 unchanged at 6% with an upside bias; RBI warns agricultural output is likely to be lower than in the previous financial year
Key objectives:
* RBI projection of inflation by the end of March 2010 revised to 6.5%, with an upside bias, from the earlier target of 5%
* Medium-term inflation target 3%
* Price stability
Stance for the review:
* Keep a vigil on trends in inflation and be prepared to respond swiftly and effectively through policy adjustments to stabilise inflation expectations
* Monitor the liquidity situation and manage it actively to ensure credit demands of productive sectors are adequately met; also securing price stability and financial stability
* Maintain a monetary and interest rate regime consistent with price and financial stability, the one which is supportive of |
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| Food supply complicates monetary policy review: CEA | 26-OCT-09 |
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| Constraints in food supply are making it difficult for RBI to strike a balance between promoting growth and controlling inflationary expectations, government's Chief Economic Adviser Arvind Virmani said today. |
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| Food supply complicates monetary policy review: CEA | 26-OCT-09 |
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| Ahead of the Reserve Bank's credit policy review tomorrow, Chief Economic Advisor Arvind Virmani has said the impact of weak monsoon on food supply will make it a bit difficult for the RBI to strike a balance between promoting growth and controlling inflationary expectations. |
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| India's Financial Sector in Current Times | 26-OCT-09 |
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| I am greatly honoured by the invitation to deliver S. Guhan Memorial Lecture. I am grateful to the organisers namely, Citizen Consumer and Civic Action Group, for extending the invitation. Mr. Guhan’s reputation as a distinguished scholar, as a thorough gentleman, as an outstanding civil servant, as a respected authority in applied economics and above all as one committed to highest values in life, are well known. |
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