India&rsquo;s 10-year bond yields were near the lowest level in almost a month on speculation that slowing economic growth would prompt the central bank to temper the pace of interest-rate increases.

Bond yields near one-month low

Business Standard

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BS People: Neeraj Swaroop

In a thin trade, the rupee on Wednesday rose by four paise to close at more than a one-week high of 44.45/46 against the US currency, following a weak dollar abroad and fresh capital inflows, despite weak local equities.

Rupee gains on capital inflows

Bank shrinks balance sheet by 3.5% and loan book by 3.66% to maintain profitability.

YES Bank: Housekeeping time

The rupee fell for the first time in three days on concern that accelerating inflation would damp economic growth and reduce corporate earnings.

Rupee declines on inflation concerns

The successive increases in policy rates by the Reserve Bank of India have necessitated changes in investors&rsquo; portfolios. Some ideas on how one should go about those.

Policy pressure on portfolio 

Bankers and other stakeholders are now almost certain that the Reserve Bank of India (RBI) will increase the key policy rate, or the repo rate, by 25 basis points (bps) on Tuesday. But if they are still keenly awaiting the first quarter review of the monetary policy, it&rsquo;s because of growing expectations that Governor D Subbarao will finally signal an end to the prolonged rate increase season, with core inflation showing signs of stabilising.

Once more, then no more

The rupee fell by five paise to Rs 44.40 against the US dollar in early trade on the Interbank Foreign Exchange on Monday, weighed by weakness in shares and some demand from importers for the American currency.

Rupee declines on US concern

The rupee advanced to its highest level in almost three years, after the central bank raised borrowing costs by more than economists forecast, increasing the country&rsquo;s yield advantage over developed nations.

Rupee climbs to 3-year high

Industry heads across sectors, especially those in realty, automobiles and infrastructure, decried on Tuesday's &ldquo;unexpected&rdquo; 50-basis point rise in repo rates by the Reserve Bank of India (RBI).

Industry shocked, fears slowdown

Disappointed with the central bank's move to raise the key rate by 50 basis points, automotive companies are expecting a severe hit on retail demand, whose growth had already halved during the first quarter this year.

RBI rate rise to hit auto industry

The Reserve Bank of India (RBI) today warned about the invisible and &lsquo;suppressed&rsquo; inflationary pressure in the economy, owing to large under-recoveries of the oil marketing companies (OMCs).

Suppressed inflationary pressure exists

While industry chambers give a thumbs-down, saying growth will be hit.

Pranab supports RBI move

With the rate of inflation back to double digits in just two years, demand for inflation-linked bonds is likely to be robust, say market participants. Keeping in mind the rising interest rate scenario, the Reserve Bank of India (RBI) has initiated discussions on introducing Inflation Indexed Bonds (IIBs) to deepen the government debt market.

Time ripe for introducing inflation-indexed bonds, say market participants

Banks are in a hurry to increase their lending rates after the Reserve Bank of India (RBI) on Tuesday raised the repo rate, at which it lends to banks, by 50 basis points to eight per cent. Deposits rates are also set to go up but at a slower pace compared to lending rates, bankers said.

Rates for lending, deposit all set to increase

The higher-than-expected rate rise by the Reserve Bank of India (RBI), pushed yields on the 10-year benchmark government bonds by 15 basis points on Tuesday. The yields touched 8.40 per cent minutes before the announcement of the first quarter policy review.

Yields shoot up, as RBI surprises with 50-bps rise 

Pointing to the risk of high fiscal deficit pushing up inflation, the Reserve Bank of India (RBI) on Tuesday  said the central government would need to improve the quality of expenditure to contain demand in the economy.

Govt must improve expenditure quality

Low growth and high inflation is my main worry. With this kind of increase, growth of cars have flattened off, sales of trucks have declined.

Inflation to remain, downside risk to growth

Appeals from banks to revise the norms for identification and classification of bad loans based on the commercial operation date of a project, have failed to find favour with the Reserve Bank of India (RBI).

RBI quashes banks' plea to revise NPA norms

The Reserve Bank of India&rsquo;s (RBI&rsquo;s) strong policy signal in the form of a 50-basis point rise in repo and reverse repo rates shows the central bank&rsquo;s firm commitment to fairness and equity, as soaring inflation hurts the poor more. While basic, unavoidable essentials such as food, fuel and housing have spiralled for ordinary families, the stimulus measures after the global crisis have disproportionately benefited the well-heeled, those able to afford costly leisure goods. RBI has been trying to correct this imbalance, by controlling aggregate monetary demand in a consistent fashion.

A firm commitment to anti-inflationary stance

The Reserve Bank of India&rsquo;s (RBI&rsquo;s) latest quarterly report on the economy articulates that over the past 15 months, it has undertaken one of the sharpest monetary tightening seen across the world. Factoring in Tuesday&rsquo;s monetary measures, since March 2010, there has been a cumulative increase of 475 basis points in operational policy rates. Clearly, at this juncture, RBI remains steadfast in its single key objective of anchoring inflationary expectations. However, the 50 basis points increase does seem sharp.

RBI steadfast in anchoring inflationary expectations

Financial Analysis: Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

Finance News Analysis, Financial Analysis and Research | Business Standard

Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

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