This has been done to stop lazy banking. Banks are being encouraged to lend instead of parking their resources with the RBI and earn risk-free interest income
They noted that the pandemic hadn't destroyed the economy's production capabilities, and once the situation starts normalising, domestic demand would need to be stimulated swiftly
MPC report says better transmission of rates would remain priority
While efforts are being mounted on a war footing to arrest its spread, Covid-19 would impact economic activity in India directly through domestic lockdown, the central bank has said
It's time for thoughtful decisions through 2020 and 2021, where the desired outcome is one where private investment in 2025 is superior to the value seen in 2011 in real terms
In the world of finance, a moratorium is a temporary suspension of an activity in response to sudden financial hardships
Once the lockdown is lifted, we will need the mother of all fiscal and monetary policy support to sustain the economy
No one cares about fiscal deficit now. Or for that matter, inflation. The focus is on growth and growth alone
RBI's steps will help in smooth functioning of financial markets
The unexpected move came ahead of its scheduled policy decision meeting on March 25.
The govt last cut the small savings rates for the July-September 2019 quarter, except for one scheme
The latest numbers could increase the clamour for a rate cut by RBI's Monetary Policy Committee in its next meeting in April
The Ministry of Finance and the Reserve Bank of India signed a Monetary Policy Framework Agreement on February 20, 2015
To keep inflation under specified level, the government in 2016 had decided to set up MPC headed by RBI governor entrusted with the task of fixing the benchmark policy rate (repo rate)
"Multiple objectives are not a good thing. They confuse the markets," said a senior economist not wanting to be quoted.
The index of industrial production (IIP) fell from a growth rate of 1.8 per cent, as the manufacturing sector slipped into negative territory again
The market has taken the long-term repos worth Rs 1 trillion as the biggest developmental and regulatory step that came out of the blue, analysts said
At the sixth bi-monthly policy announcement, where the policy rates were left unchanged, the Reserve Bank announced long-term repurchase agreements (repos) of one-year and three-year tenors
The MPC's action has not surprised as CPI inflation for December left little room for a rate cut
The RBI has cumulatively cut the repo rate by 135 basis since February 2019 to a nine-year low of 5.15 per cent