RBI in wait and watch mode now, may cut rate by 25-75 bps in 2017

RBI in wait and watch mode now, may cut rate by 25-75 bps in 2017

NEW DELHI: The Reserve Bank of India (RBI) did the unexpected on Wednesday, but most experts called it a ‘brave & bold’ move by the central bank to deal with rising inflation and global uncertainty. Most analysts expect RBI to cut policy rate by 25-75 bps in calendar year 2017. In a surprise move on Wednesday, RBI decided to keep the repo rate unchanged at 6.25 per cent compared with market expectations of at least 25 bps cut. The Monetary Policy Committee (MPC) voted 6-0 in favour of keeping the…

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Waiting for RBI rate cut? Lock in some money in high-yielding corporate FDs first

Waiting for RBI rate cut? Lock in some money in high-yielding corporate FDs first

Corporate fixed deposit schemes are in the limelight these days amid volatility in the equity market and hope of a rate cut by the Reserve Bank of India (RBI) on Wednesday. These financial instruments usually provide 50-150 basis points more return than bank fixed deposits. However, corporate fixed deposits come with higher risk as any headwinds for the business can lead to a company defaulting on payment of interest as well as principal. With an interest rate of around 8.50 per cent per annum for three years, corporate fixed deposit…

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