Top Headlines: Fed's 3rd big hike, liquidity slides into deficit, and more

Federal Reserve officials raised interest rates by 75 basis points for the third consecutive time and forecast they would reach 4.6% in 2023. Liquidity in the banking system — as gauged by the Reserve Bank of India’s (RBI’s) daily operations — has slipped into a deficit mode for the first time in over three years. Read more on these in our top headlines.

Fed delivers third-straight big hike, sees more increases ahead

Federal Reserve officials raised interest rates by 75 basis points for the third consecutive time and forecast they would reach 4.6% in 2023, stepping up their fight to curb inflation that’s persisted near the highest levels since the 1980s. In a statement following a two-day meeting in Washington, the Federal Open Market Committee repeated that it “is highly attentive to inflation risks.” Read more
 

Liquidity slides into deficit for first time in over 3 years: RBI data

Liquidity in the banking system — as gauged by the Reserve Bank of India’s (RBI’s) daily operations — has slipped into a deficit mode for the first time in over three years, signalling a structural shift away from loose financial conditions in the economy. According to the RBI’s daily data on money market operations, the central bank infused net liquidity worth Rs 21,873.43 crore into the banking system on September 20 —most since May 2019, money market officials said. Read more
 

NIA conducting nationwide anti-terror raids at houses of PFI leaders

The National Investigation Agency on Thursday morning launched a massive nationwide search operation against groups, including PFI, and individuals allegedly supporting terrorists, officials said. In the "largest ever investigation till date", the searches are taking place at the premises of those allegedly involved in terror funding, organising training camps, and radicalising people to join proscribed organisations, they said. Read more
 

Govt takes PLIs back to the drawing board amid critical challenges

It’s a massive gamble that could bring in Rs 30-35 trillion in incremental manufacturing revenues from 15 sectors in the next five years. Yet the absence of chest thumping was notable a few weeks ago when Niti Aayog announced its first-ever disbursement of Rs 53 crore to electronic manufacturing services (EMS) player Dixon Technologies under the production-linked incentive (PLI) scheme. Read more
 

Banking system liquidity may remain in deficit in second half: Analysts

Liquidity in India's banking system is likely to remain in deficit in the second half of this financial year as credit growth picks up and the circulation of currency notes rises, analysts said. The country's banking liquidity slipped into deficit on Tuesday for the first time in over three years, according to data from the Reserve Bank of India. Read more