Page 16 - Monetary Policy

The case for rate hikes heading for contested territory as recession looms

A parade of Federal Reserve officials in recent days has sought to emphasize this message - though a slump isn't their forecast

What to expect from the RBI's upcoming monetary policy announcement?

In the last policy announcement on June 8, the Reserve Bank of India (RBI) announced a repo rate hike of 50 basis points to take the rate from 4.4 per cent to 4.90 per cent

Markets snap 6-day winning streak over Fed anxiety; Sensex falls 306 pts

More than the Fed's hike, it is the commentary that would impact market sentiment

Asia's central banks forced to play catch-up in global rush to raise rates

Having bucked a global dash to tighten monetary policy for a year, Asian central banks find themselves scrambling to catch up in order to tackle rising inflation and defend weakening currencies

Central banks: Redeeming credibility

Central banks seem to have forgotten that there is one role, viz. controlling inflation, which is solely their responsibility

Singapore further tightens monetary policy, rises mid-point of its dollar

The Monetary Authority of Singapore (MAS) further tightened its policy stand by raising the mid-point of the Singapore dollar Nominal Effective Exchange Rate policy band to its prevailing level

Economists see waning urgency for India's RBI to go for large hikes

Citigroup Inc. economists expect a 35 basis-point increase in borrowing costs at the Reserve Bank of India's next Monetary Policy Committee meeting in August, a move also predicted by Barclays Plc

CEOs expect better job creation despite monetary tightening in H1FY23

A majority of CEOs in the poll anticipate improved job creation prospects in their companies in the first half of FY23, even as expectations of monetary tightening are pervasive

Don't think today's situation calls for negative real rates: Jayanth Varma

Either inflation has to come down on its own or we will have to raise the rate, or it will be a combination of the two, says MPC member Varma

'There shouldn't be intolerable growth sacrifice to tame inflation'

With a cautiously optimistic outlook for the country's economy, MPC member Jayanth Varma said growth prospects for 2022-23 and 2023-24 financial years are 'reasonable'

Taming inflation

The US Fed might be able to get the job done at a lower cost than is widely feared

Rupee hits fresh all-time low vs dollar as US rate hike worries deepen

Ends at 78.39/$1 as against 78.08 on Tuesday. Wednesday's closing level also marks new record intraday low for the rupee versus greenback

5 reasons why BofA Securities has cut year-end Nifty target to 14,500

Clarity on macro and monetary policy outlook in the US/India, it said, is the silver lining that could see markets bottom out by August/September 2022., it said

Big rate hikes to be the global norm as inflation remains a challenge

With no end in sight to Russia's invasion of Ukraine, commodity prices remain elevated and supply chains remain disrupted

SBI raises lending rates, HDFC Bank and BoB increase deposit rates

Moves follow RBI's 90-bp repo rate increase in a little over a month

Fitch sees another 100 bps policy rate hike by Dec, cites rising inflation

Growth will improve in June quarter as consumption revives and Covid-19 cases continue falling, it says

Shifting cycle

Investors should be prepared for further turmoil

Builders expect slowdown in housing demand in short-term on RBI's rate hike

The RBI on Wednesday hiked the key benchmark rate by 50 basis points

Policy tightening to pressure FY23 numbers, deficit seen at 6.7%: Report

The government has pegged the combined fiscal shortfall at 9.8 per cent of which the central deficit is seen at 6.4 per cent (down from 6.7 per cent in FY22) and states' at 3.4 per cent for FY23.

Jamie Dimon says JPMorgan is bracing itself for economic 'hurricane'

Dimon said Wednesday that JPMorgan is preparing for that turbulence by being conservative with its balance sheet