Page 4 - Rate Cut
Economists see no rate cut by RBI in 2017
The US Federal Reserve's 25 basis points rate increase and its indication of two more rises in 2017 might have nixed the chance of the Reserve Bank of India (RBI) cutting its rate.Being an emerging market that needs foreign portfolio funds to bridge its current account deficit, India needs to maintain a certain interest rate differential, to attract dollar investors. A rate cut in India and a rate hike in the US would squeeze that difference and could lead to an outflow. And, India's inflation rate is unlikely to remain soft in the coming months, as was evident from the cautious tone of the Monetary Policy Committee members from the minutes of their meeting. So, it could be an extended pause for the Indian central bank, keeping the policy repo rate at 6.25 per cent, at least in this calendar year, and nudging banks to pass on earlier cuts. But, banks have largely ruled that out in the past. A rate cut at this point would not necessarily guarantee that banks would pare their own ...
 "Economists see no rate cut by RBI in 2017")
Treasury gain party over for banks
As rate easing cycle comes to halt, so does the high surge that banks witnessed in their income
 "Treasury gain party over for banks")
Rates unchanged: RBI, banks differ on lending rate cuts
RBI sees much room and other bankers do not, giving various reasons
 "Rates unchanged: RBI, banks differ on lending rate cuts")
25 bps repo rate cut more likely in April not February: Citigroup
The central bank will hold its next monetary policy meet on February 8
 "25 bps repo rate cut more likely in April not February: Citigroup")
Interest rate cut: Small relief for indebted firms
Interest rate cuts have not reduced cost of funds for corporates in the past
 "Interest rate cut: Small relief for indebted firms")
Prospects of rate cut bleak as dollar, crude rise: Assocham
It noted that the biggest risks are emanating from strengthening of US dollar, raking in international money back into American economy
Raghuram Rajan too may have cut interest rate like Urjit Patel did: Fitch
India's external position has improved in recent years, and is no longer of major concern to the central bank
 "Raghuram Rajan too may have cut interest rate like Urjit Patel did: Fitch")
Cooling inflation offers scope for another rate cut this year: India Ratings
The agency expects another 25 basis points cut in the repo rate in the financial year 2016-17
 "Cooling inflation offers scope for another rate cut this year: India Ratings")
SBI 'consistently' passed on RBI's rate cut to borrowers: Arundhati Bhattacharya
Bank says out of the 1.75% rate cut by the RBI since January 2015, it has already passed on up to 0.95% to the borrowers
 "SBI 'consistently' passed on RBI's rate cut to borrowers: Arundhati Bhattacharya")
Cheaper credit only after deposit rate cut
The banking regulator expects banks to make loans cheaper over the coming quarters
Patel debuts with rate cut
Repo rate cut 25 bps to six-year low of 6.25%; unanimous decision by new monetary policy committee; India Inc hails move, all eyes on banks
 "Patel debuts with rate cut")
Rate cut could save India Inc Rs 6,300 crore in interest outgo
This would push BSE 500 companies' combined net profit by around two per cent over the next four quarters
 "Rate cut could save India Inc Rs 6,300 crore in interest outgo")
3 strong reasons for a rate cut
There are three compelling reasons for Reserve Bank of India (RBI) Governor Raghuram Rajan to cut interest rate by 25 basis points (bps) on August 9
 "3 strong reasons for a rate cut")
Window to ease key rates likely in second half of 2016: DBS
From 5.5% in January-February this year, CPI inflation eased to 4.8% in March
RBI policy review: Here's how 0.25% rate cut will affect you
When interest rate is low, banks' lend at a cheaper rate, leading to a fall in EMI, boosting industry, economy
 "RBI policy review: Here's how 0.25% rate cut will affect you")
Developers expect demand to go up after RBI's rate cut
President of real estate association Credai, said home buyers would get at least a 50 basis point cut in home loan rates
RBI cuts key rate by 0.25% to 6.5%
The reverse repo rate-at which banks can park excess funds with the RBI -is reset at 6%
 "RBI cuts key rate by 0.25% to 6.5%")
RBI's new mission: Getting lenders to pass on its rate cuts
The RBI is expected to cut repo rate another 25 bps as India bids to revive investment, spur economic growth
 "RBI's new mission: Getting lenders to pass on its rate cuts")
RBI may cut interest rate by up to 0.50% to propel growth
Bankers said high interest rate could make Indian economy sluggish given that inflation is around 5%
 "RBI may cut interest rate by up to 0.50% to propel growth")
RBI may go for a 'measured' cut next week: DBS
Raghuram Rajan on February 2, left the key interest rate unchanged citing inflation risks and growth concerns
 "RBI may go for a 'measured' cut next week: DBS")