Page 3 - Rate Cut

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

Letter to BS: Mindless rate cut by RBI is a step in the wrong direction

Banks may not like to give loans to financially unstable companies. A major reason is dwindling and fast-diminishing demand

RBI likely to put rate cuts on extended pause after spike in inflation

The RBI has cut rates by a total of 135 basis points in five moves in 2019 and shocked markets by holding rates steady at its December meeting.

India's yield curve sees steepest rise in nine years, set to go up further

The yield spread between the most-traded 10-year notes to two-year debt is at its highest since 2010 on concerns the government will expand record bond sales

Brace up for the sixth rate cut in a row

In his toughest policy, Shaktikanta Das, who completes his first year at RBI this month, must reassure the market that the fiscal slippage is priced in

Q2 GDP, core sector data may push RBI to cut rates in December: economists

The GDP growth rate for Q2FY20 was in line with the market expectation at 4.5 per cent, says Deepthi Mary Mathew, economist, Geojit Financial Services

RBI may cut rates by 25 bps to push growth despite high inflation: BofA-ML

Analysts at foreign brokerage Bank of America Merrill Lynch said the RBI will cut rates by 0.25 per cent in December, and follow it up with a 0.15 per cent in February

New challenge to economy: Lenders not passing on rate cuts to customers

A decision to announce a fresh stimulus could be a tough one for the government, after its budget deficit topped 90% of its full-year goal

Experts call for multiple GST rate cuts in India citing Singapore example

Singapore has only one tax rate under GST- seven per cent -- on taxable goods and services while India has multiple slabs to charge the indirect tax

Corporate tax rate cuts: Mutual funds use rally to offload winners

On an overall basis, fund houses pumped in Rs 11,000 crore into stocks during the month with the benchmark Nifty ending with 3.6 per cent gain

An appropriate call

Significant fiscal slippage could affect monetary policy

Letter to BS: Highly naive to assume rate cuts will help arrest slowdown

Ironically, all that the RBI proposes, the government eventually disposes with some other obligations ranking high on its mind

How're corporation tax cuts going to be financed? Is this helicopter money?

Slashing the government's take from corporate profits to 25.2 per cent from 34.9 per cent has given a boost to stock-market sentiment

Shaktikanta Das expects growth to pick up from Q2 on govt spending

In a major fiscal booster, the government slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies

Rate cut, infusion of liquidity will end credit crisis: Edelweiss chairman

The premium that top-rated non-bank lenders pay over sovereign debt to borrow fell to the lowest in a year last week

Rate cut alone can't arrest slump, boost rural demand: SBI report

Economists at State Bank Research also warned that any attempt to trim government spending to maintain the fiscal numbers will be severely detrimental to growth

Will Fed cut rates further? Suspense looms as investors expect more relief

A big clue could come from Chairman Jerome Powell when he speaks on Friday at the Kansas City Fed's annual policy retreat in Jackson Hole, Wyoming

Deposit rate cuts at private banks likely to lag State Bank of India

Having cut rates, they may use this to strategically raise more term-liabilities

Better transmission, but more volatility for borrowers: Experts

From a borrower's perspective, shopping for a loan, currently, can be seriously confusing

The pros and cons of RBI rate cut

What is required is change of growth strategy, from foreign finance-led to exports & domestic growth