Are Indian bonds defying rate transmission?
Banks earn 5.15% via the repo window while four-year government bonds are yielding 6.55%.
Market worried over fiscal i math, repo-bond yield spread widens
The RBI purchased Rs 3,31,100 crore net of government bonds in 2018-19 throu...
Cause of the pause: Is RBI fighting a losing battle for rate cut transmission?
Not a single economist among the 34 surveyed by Bloomberg had ...
RBI acted ahead of time in reducing policy rates: Shaktikanta Das
Das called for a coordinated policy effort among all advanced economies to prop the global economy.
Banks cannot go beyond a threshold to cut deposit rates as India lacks social security net: SBI chairman
"We can't lower the interest rates (on lending) without lowering the interest rates for depositors. And there is a point, a threshold below which we cannot reduce the interest rate for depositors. Third thing is that the credit cost in the country is very high because the default rates are very high, so the spread has to be necessarily high," said SBI chairman.
SBI links retail and MSME loans to repo rate
Some other banks have also linked their loans to an external benchmark.
Questions for 2020: Loans become cheaper?
Competing with private companies for limited resources could cap the room for RBI to cut interest rates. Even if it does, market rates won’t ease due to higher government debt. Also, with inflation being predicted to ease by the second half of 2020 towards the target of 4%, prospects for sharp rate cuts diminish.
Central Bank of India reduces repo-based lending rate by 25 bps
After the Reserve Bank of India cut the repo rate for the consecutive time this year on Friday, many banks too have followed suit and reduced interest rates on their loans.
Asia shares camp on high ground, oil up on Libya shutdown
Early turnover in Asian shares was light with US stock and bond markets closed for the Martin Luther King Jr. holiday.
RBI policy: Why repo rate cut failed to cheer
While rate cut of 25 bps was in line with consensus estimates, it was below bond market’s expectations.
Next rate cut depends on how teary-eyed onion leaves RBI
RBI was widely expected to cut interest rates at last week's policy, which would have made it into a sixth consecutive cut in as many policy reviews in 2019 to boost the sagging growth, that has dipped to a six-year low. "We advise investors to track onion prices to time the next rate cut by RBI," Bank of America Securities said.
India Inc welcomes RBI move; says rate cut will spur growth
Industry's reaction came as RBI slashed its benchmark lending rate to 5.15 per cent.
RBI cuts repo rate by 25 bps to 5.15%, lowest since March 2010
It was in addition to a cumulative 110 bps rate cut that RBI has announced so far this year.
RBI repo rate cut: Cheer for borrowers but interest rate on FDs likely to fall further
This cut is sweeter for new borrowers as banks are supposed to link all new floating rate loans to four external benchmarks specified by RBI from October 1.
Longer term repos over OMOs of RBI negative for bond market: Kotak
The RBI has invited public feedback on the working group's recommendations by October 31, 2019.
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