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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RBI has delivered on rate cut: How you can make money in stocks now

RBI has delivered on rate cut: How you can make money in stocks now

Earning in stocks of certain sectors is set to increase with the new RBI rate cut. The domestic stock market might like the new avatar of Urjit Patel as dovish RBI Governor. The jittery market and stocks breathed a sigh of relief after the Reserve Bank of India (RBI) slashed policy rates by 25 bps to 6.25 per cent and indicated that inflation will cool off in the subsequent quarters. Further cooling off in inflation will provide room to the central bank to cut rates further, which would be important…

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How does the RBI credit policy impact us

How does the RBI credit policy impact us

Over the past six months, RBI’s credit policy has focused more on pushing up liquidity rather than giving rate signals The credit policy or monetary policy is announced by the RBI every two months. The purpose of the policy is to give a picture about the inflation in the economy, the likely path of interest rates and the liquidity in the system. Additionally, the policy also reviews the global economy and gives hints on how the Indian economy could perform in the near future. Riaz Ahmed, a middle-aged drilling engineer…

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RBI keeps interest rates unchanged

RBI keeps interest rates unchanged

Interest Rates unchanges: Fixed Income investors should make full use of this opportunity “Potential upside risk from inflation”, is one of the major factor that made Reserve Bank of India (RBI) Governor Raghuram Rajan keep the policy rates unchanged in the 7th June monetary policy meet. This could mean the interest rates might not be coming down in a hurry. While EMI payers may not have anything to cheer about, fixed income investors may have a sigh of relief. In fact, the probability of a rate cut was low. Two…

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