In fact short-term rates will continue to remain near the MSF rate in the next week or so
Interview with Governor, RBI
The Street, however, feels such measures might not see significant investor interest
May hit sales of houses and consumer durables, make loans for firms costlier
Central bank will offer near-national treatment to foreign lenders opting for subsidiarisation
In the absence of guidance on inflation, credit growth and money supply, Street expects reactionary policy steps ahead
Inflation-wary central bank raises repo rate 25 bps; but cuts MSF rate in equal measure to allow extra liquidity; bankers ambivalent on future course but stock markets relieved
Banks might hold on to lending rates for the time being
RBI hiked repo rate by 25 basis points or 0.25 percent to 7.75 percent
In the absence of any guidance on inflation, credit growth and money supply, market expects future policy action to be reactionary
RBI today increased repo rate by 25 bps to 7.75% to tame rising inflation
By increasing repo rates, Rajan has punctured one more hole in the wheels of growth
Hawkish policy statement portends any rate cut expectation as inflation expectations remain elevated for the year
In past, FinMin openly expressed displeasure over repo rate increase or status quo maintained by then RBI governor D Subbarao
The central bank cut FY14 GDP forecast to 5% from 5.5%
What did the RBI do today?Take a quick look
Yields likely to fall further, rupee could weaken
RBI cuts MSF rate by 25 bps
The expected hike in repo rate does not bode well for long-term bond funds; stay with short-term funds
It is widely expected that the central bank will restore the 100 bps corridor between the repo and the MSF rate on Tuesday