Reserve Bank of India to be on a long-pause in rates on sticky non-food inflation: Report
It can be noted that the high inflation driven by the food prices has forced the RBI to go for a status quo in rates for the three consecutive reviews of the bi-monthly policy meetings, even as growth continues to be in the negative territory. The RBI expects the GDP to contract by 7.5 per cent for FY21.
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Starbucks fined for not passing on GST cut benefits
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Diesel price dips below Rs 73; petrol rate cut for second time in six months, drops 13 paise
Diesel rates had gone up by Rs 12.55 a litre between June 7, when oil firms resumed revising prices in line with cost, and July 25. Diesel price has remained unchanged in the country since July 25, except in Delhi where a reduction in VAT lowered the rate by Rs 8.38 per litre.
India's FY21 GDP estimates cut sharply after Q1 numbers, Goldman predicts deepest 14.8% contraction
Both Fitch and Goldman Sachs have forecast a sharp bounce-back for India in FY22 but attributed this to the lower base of the current fiscal year. Fitch’s estimate for India was in contrast with its marginally improved projection for the global economy in 2020.
Moody’s cuts ratings of four state-run lenders, says outlook negative
The ratings agency said the BCA downgrades take into consideration rising risks to the banks' asset quality as a result of the severe economic contraction, which will result in an increase in credit costs.
Govt looking into auto industry’s demand for temporary GST cut
Javadekar who was speaking at the 60th Annual Convention of industry body Society of Indian Automobile Manufacturers (SIAM) said he will discuss the industry’s suggestion for a temporary reduction in GST with the Prime Minister and the Finance Minister.
RBI at end of rate cut cycle, govt needs to play decisive role for eco recovery: SBI economists
RBI had cut rates by 1.15% in two moves since the onset of the pandemic in March this year in order to push economic growth, but surprised many by holding on to rates at the August review as inflation overshot its target. If RBI continues with unconventional policy measures it would help the financial markets because it has been significantly able to reduce the long and variable lags of monetary policy through successes like fastest rate transmission and restoring financial stability.
Union Bank slashes MCLR by up to 15 bps
This is the fourteenth consecutive rate cut announced by the bank since July 2019, the release by Union Bank said. Indian Overseas Bank (IOB) has also reduced its MCLR by 10 basis points (bps) across all tenors effective Monday.
Canara Bank slashes MCLR by up to 30 bps across various tenors
The six-month MCLR has been cut to 7.40 per cent from 7.50 per cent, the bank said. The one-year MCLR has been revised to 7.45 per cent from 7.55 per cent earlier. The revised lending rates will be effective from August 7, said the bank.
Retail Inflation above 6% in June, economists expect further rate cuts
Inflation, as measured by the CPI, was 6.09% in June, up from 5.84% in March, the last official headline inflation number released by the govt, even as food inflation cooled to a nine-month low of 7.87% in June from 9.2% in May. As per experts, a decline in demand has not had any impact on prices and inflation has hardened on supply side disruptions.
Interest rate cut, deposit growth to hurt lenders’ profitability in Q1
Though credit growth is slower, banks have had to reduce lending rates following the RBI’s rate cuts. Data from the RBI show that the monthly weighted average lending rates on fresh loans slipped 28 basis points for commercial banks between March and May, though lower than the 115-bps cut by the RBI during that period.
Rate cut helping deliver growth is not working in simplistic way: Rathin Roy
Rathin Roy said the assumption that rate cut helping deliver growth is not working in simplistic way.
Expect 50 bps rate cut by October: Bank of America
India's economy may contract by 3 to 5 per cent in FY'21, which may trigger a 50 to 150 bps points reduction in benchmark repo rate by the central bank during the year.
Canara Bank, Bank of Maharashtra cut MCLR
Bengaluru-based Canara Bank has cut its one-year MCLR to 7.55 per cent from 7.65 per cent earlier. Pune-headquartered Bank of Maharashtra (BoM) has reduced one-year MCLR to 7.50 per cent from 7.70 per cent.