Page 24 - Monetary Policy

RBI's MPC begins deliberations on monetary policy, decisions on Aug 6

The central bank has been taking steps proactively to limit the damage to the economy caused by the pandemic and lockdown

Rate cut unlikely but a dovish policy on the cards

For RBI Governor Shaktikanta Das, this is probably the toughest monetary policy. The message it sends out is more important than the action

RBI's Hamletian dilemma

The relationship between monetary policy and inflation is not reliable in a crisis, creating a classical problem for the central bank

What ails Indian banking, according to Viral Acharya

Some of India's top-rated firms do not always make payments on time and many state-owned, listed entities that borrow in bond markets default regularly

Interest rates to processing fee, RBI brings relief for loan app borrowers

The new rule book should bring down interest rates and improve recovery methods

Monetary policy for exceptional times

Monetisation of deficit is unlikely to spark inflation

Slow rate cut transmission hurting returns on HAM projects: India Ratings

The RBI has slashed repo rates by almost 200 basis points since June 2019 from 6.25 per cent to 4.25 per cent to ensure availability of cheaper credit

Slowdown blues: RBI rate cuts not effective anymore, say analysts

Analysts want RBI to look at 'unconventional' monetary policy measures for a revival nudge

Looking beyond the rate cut

Credit guarantees from government, deficit financing by the RBI and an HTM hike for banks are the only solutions that can get the wheel of credit and investment rolling

RBI buttresses earlier position forcefully; economic forecasts conservative

The central bank cut the repo rate by 40 bps to 4% and the reverse repo rate was brought down to 3.35%

How to bring banks back to the credit market

Concerted efforts are required from the central bank and the government

Best of BS Opinion: Monetary policy framework, Covid-19 outbreak, and more

Here's a selection of Business Standard opinion pieces of the day

Policy credibility

Monetary policy framework should not be undermined

In a sea of red ink

A lot of uncertainties remain on how, when, and at what total economic and social cost, this pandemic will be tamed

Coping with the lockdown

Given the scale of demand contraction, we need a fiscal package of at least 3-4 per cent of GDP

Debt market friction

A slow recovery will increase credit risk

Can rate cut force banks to lend?

Credit guarantee by the government for banks' fresh loans to certain segments might do the trick at a small fiscal cost

140 bps rate cut in a little over a fortnight

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

Carry forward structural economic reforms

Tackling Covid-19 should open the door for urgent economy-wide reforms

Coronavirus impact: Credit growth likely to remain modest, says RBI

MPC report says better transmission of rates would remain priority