The job of breaking the back of inflation is left to the government's proactive supply management strategies, for now
RBI will have to address the excess liquidity issue
He says, the rate cycle seems to have bottomed out but RBI may not change its accommodative stance anytime soon
Mood of the nation has shifted to confidence & hope, says RBI Governor Shaktikanta Das
Given inflation pressure, there is no doubt that it would be difficult for the MPC to cut rates in the near-term
The RBI also said it would inject one trillion rupees via 56-day repo operations while offering to take back longer duration one- and three-year cash
The country's second largest lender Punjab National Bank (PNB) on Monday hiked its repo-linked lending rate (RLLR) by 15 basis points (bps) to 6.80 per cent.
Lenders allowed to provide a restructuring facility on some loans that were standard as on March 1 this year
The Monetary Policy Committee (MPC), headed by the RBI Governor, is scheduled to meet for three days beginning August 4 and will announce its decision on August 6
All the previous repo rate cuts by the RBI have failed
The bank's marginal cost of funds-based lending rate (MCLR) has also been revised downwards by 15 bps across all tenors.
The government expects banks to reduce lending rates, which is required to kick start the economy hit hard by the coronavirus-forced lockdown, among other factors
Rise in group exposure limits to help large corporates
The central bank has increased group exposure limits of lenders from 25% to 30%
The six-member MPC also kept policy stance unchanged at 'accommodative' for "as long as necessary" to revive growth
Fund managers expect yields to remain elevated at the longer-end of the yield curve in light of government's borrowing plans
RBI extends the moratorium on loan repayments by three more months
The only way to boost demand may be lowering interest rates to boost consumption, analysts said
The record amount is a worrying sign for the economy: either there is no demand for credit or banks are scared to lend.
No firm decision has been reached on this, said sources. The SDF, when introduced, will become the lower bound of the corridor for the liquidity management window.