Page 26 - Rbi Policy

RBI monetary policy: When boring is exciting

India, when compared to the US, has been rather boring, albeit in a good way. In contrast to the volatility in the US markets and macro data, India has been a beacon of stability

India Q4 GDP data: Big-bang ending for FY24

The data for the fourth quarter takes FY24's GDP growth to 8.2 per cent Y-o-Y, which is 0.4 percentage points higher than our projected estimate for the year

Reserve Bank of India cancels 10-year green bond auction for first time

Market refuses to pay greenium; rupee falls to 2-week low on poll jitters

Govt bond yields largely unchanged as traders await fresh debt supply

New Delhi will raise Rs 29,000 crore ($3.48 billion) through the sale of bonds later in the day and the auction includes a new five-year paper worth Rs 12,000 crore

Reserve Bank of India to delay interest rate cut to late this year: Poll

With near-8 per cent growth, the fastest among major world economies, and above-trend inflation there is also little urgency for the RBI to begin cutting rates unless concerns emerge about a slowdown

Rs 500 note now 86.5% of currency in circulation by value: RBI report

The increase in the share of the Rs 500 note coincides with the declining share of the Rs 2000 note, which was only 0.2 per cent at the end of FY23

RBI's increased scrutiny of banks, financial firms leads to restrictions

Since 2020, the RBI has placed business restrictions on many players

GDP growth robust on back of healthy balance sheets of banks, says RBI

India's GDP growth is robust on the back of solid investment demand which is supported by healthy balance sheets of banks and corporates, the government's focus on capital expenditure and prudent monetary, regulatory and fiscal policies, the RBI said on Thursday. The Reserve Bank's Annual Report for 2023-24 said that the Indian economy is navigating the drag from an adverse global macroeconomic and financial environment. Indian economy, the report said, is well-placed to step up growth trajectory over the next decade in an environment of macroeconomic and financial stability. "As headline inflation eases towards the target, it will spur consumption demand especially in rural areas," it said. It further said the external sector's strength and buffers in the form of foreign exchange reserves will insulate domestic economic activity from global spillovers. The report, however, added that geopolitical tensions, geoeconomic fragmentation, global financial market volatility, internation

Govt bond yields seen flattish at start of new week amid consolidation

The government's fiscal position is expected to strengthen after a better-than-estimated dividend transfer and could further reduce some supply pressure

RBI dividend usage to signal new govt's fiscal priorities: Ratings agencies

Global rating agencies on Friday said windfall of Rs 2.1 lakh crore dividend from the RBI is positive for the country's fiscal metrics and its usage will provide a signal around the new government's fiscal priorities. The board of India's central bank earlier this week decided to pay Rs 2.1 lakh crore dividend to the government from the profits earned in 2023-24. This is more than double of Rs 1.02 lakh crore that was budgeted by the government. Fitch Ratings Asia-Pacific Sovereigns Director Jeremy Zook said sustained deficit reduction, particularly if underpinned by durable revenue-raising reforms, would be positive for India's rating fundamentals over the medium-term. "The use of the dividend -- whether it is saved or used for additional spending -- could provide a signal around the government's fiscal priorities," Zook told PTI in an email response. Fitch has a 'BBB-' rating on India with a stable outlook. In January, the rating agency had affirmed India's rating on robust growt

India's new govt will be spoilt for choice with $25 bn extra in kitty

On Wednesday, the RBI announced a record Rs 2.11 trillion dividend transfer to the government

Rupee appreciates 12 paise to 83.17 against US dollar in early trade

The rupee appreciated by 12 paise to 83.17 against the US dollar on Friday, tracking a bullish trend in domestic equities, wherein benchmark indices scaled new peaks. Forex traders attributed the rally to Rs 2.11 lakh crore record dividend by the RBI to the government for the fiscal ended March 31. It was more than double the budgeted expectation, helping shore up revenue ahead of a new government taking office. At the interbank foreign exchange market, the local unit opened at 83.26 and gained further ground to trade at 83.17 against the greenback, registering a gain of 12 paise from its previous closing level. The forex market was closed on Thursday on account of 'Buddha Purnima'. On Wednesday, the rupee appreciated by 2 paise to settle at 83.29 against the US dollar. After a trading holiday on Thursday, the Indian rupee was on a strong footing following a big transfer of Rs 2.11 lakh crore in the form of dividend from the Reserve Bank of India (RBI) to the Union government, whi

Net FDI declines by 62% to $10.5 billion in FY24, shows RBI data

Lowest in over a decade; Gross FDI stable at $71 bn

Reserve Bank board approves transfer of Rs 2.11 trillion surplus to govt

The expert committee had suggested maintaining the risk provisioning within a range of 5.5 per cent to 6.5 per cent of the RBI's balance sheet under the Contingent Risk Buffer

Govt likely to cut bond sales aided by higher cash balance: Officials

The yield on benchmark 10-year bond was little changed at 7.09 per cent on Tuesday

Short-term govt bond yield may fall on Rs 60,000 crore T-bill supply cut

The yield on the 5-year government bond settled at 7.09 per cent on Friday

Global funds eye India's maturity bonds betting on RBI's policy shift

The proportion of foreign money allocated to local bonds due in 10 years or more climbed to 17 per cent last week, up from just 11 per cent in September

No need to panic on draft infra guidelines: PNB MD & CEO Atul Kumar Goel

Goel spoke on the public sector lender's latest quarterly results and its expansion plans

Consumer price inflation likely slipped in April, food inflation sticky

V Anantha Nageswaran, the government's chief economic adviser, said on Wednesday the Indian economy was better placed than before to pursue 'non-inflationary' growth

Bond buyback signals RBI's easing stance, may switch to neutral, says Citi

While liquidity tightness was not acute in April and overnight rates had not hit the MSF ceiling, the RBI probably anticipated election-related constraints on govt spending could tighten liquidity