Interest rate sensitive stocks traded in a narrow range. Realty stocks, however, bucked the trend with the Nifty Realty index rallying over 1 per cent post the development.
RBI needs to focus on whether credit is reaching the stressed areas of the economy and also if the viable firms were able to access credit and not the unviable ones, he says
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)
The brokerage had last month penciled in 5 to 7.5 per cent contraction in GDP this fiscal, saying each month of lockdown has shaved off 100 bps of the economy
The MPC, headed by RBI Governor, is scheduled to meet for three days beginning August 4
Economy likely to contract this quarter and next and in this fiscal year as a whole, according to poll of 60 economists.
Start by shifting to repo-linked rates, then seek the lowest rate being offered by lender
That apart, they expect the government's overall fiscal deficit to rise
Economic Affairs Secretary Tarun Bajaj says he is certain that a V-shaped economic recovery will take a year.
The Monetary Policy Committee (MPC), headed by RBI Governor, is scheduled to meet for three days beginning August 4
There is lots of monetary space as interest rates here are still significantly positive unlike western Europe, where there is zero to negative rates, he said at the India Global Week 2020
Analysts want RBI to look at 'unconventional' monetary policy measures for a revival nudge
Falling rates to help; rise in group exposure limits will support large companies
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.
Earlier today, the RBI slashed the repo rate by 40 basis points to 4 per cent and extended the loan repayment moratorium for another three months up to August 31
The RBI has extended moratorium period by another three months till August 31, 2020.
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
Cloudy earnings outlook in the coming quarters is likely to play spoilsport
The timely and decisive action by the Reserve Bank of India (RBI) provides vital liquidity and ensures that credit lines remain open
The Union Bank CEO said that the RBI's package would help in sustaining business at a time when a 21-day nationwide lockdown to stop the spread of the COVID-19 virus