Policy rate pause and debt recast window make sense
Rate cut off the table for now; focus is on other measures to ease stress in system
As many as 666 villages have been affected by floods across 17 districts of Uttar Pradesh, and major rivers are flowing above danger mark. Stay tuned for latest news live updates
High consumer inflation likely till September
There has been a criticism that the excess liquidity framework helps lower the cost of borrowing for the government as the yields on bonds go down
All that happened in the markets today
The RBI will constitute an Expert Committee which shall make recommendations on the required financial parameters, along with the sector specific benchmark, to be factored into debt resolution plans
At present, loans sanctioned by banks against pledge of gold ornaments and jewellery is up to 75% of the value of such items
Here are 10 key takeaways from the RBI governor's presser
Lenders allowed to provide a restructuring facility on some loans that were standard as on March 1 this year
BofA says the RBI will not only cut rates now, but will follow it up with another 75 bps cut in rest of the financial year 2020-21 (FY21)
Governor Das has recently turned his attention toward the fragile financial sector amid forecasts for a sharp rise in bad loans
Here are the top 10 business headlines on Tuesday morning
Contracting economy, rising bond supply, inching up of long-term rates reduce prospects of successive rate cuts
This will also mean that Saggar will be included the six-member monetary policy committee (MPC) as an internal RBI member.
Monetisation of deficit is unlikely to spark inflation
Following this, the reverse repo rate, or the rate at which the banks perk extra liquidity with the RBI, was reduced to 3.35 per cent from 3.75 per cent - both at their historic lows.
Since March 27, the RBI has acted proactively and ahead of time to contain the fallout of the Covid-19 pandemic.
The recent spate of rate cuts by the Reserve Bank of India could be bad news for savers
Here's how borrowers are likely to gain from RBI's rate cut, subject to banks, non-banking financial companies passing on the benefits to customers