Expert Zone

India’s growth outlook keeps getting better

By Nimesh Shah
December 8, 2014

(Any opinions expressed here are those of the author and not necessarily those of Thomson Reuters)

Interest rates likely to remain high

February 6, 2014

(Rajiv Deep Bajaj is the Vice Chairman and Managing Director of Bajaj Capital Ltd. The views expressed in this column are his own and do not represent those of Thomson Reuters)

Why the RBI raised interest rates

January 29, 2014

(Any opinions expressed here are those of the author and not of Thomson Reuters)

The Reserve Bank of India (RBI) raised interest rates at its review on Jan 28. The justification usually given for doing so is inflation.

Need to rebalance RBI’s interest structure

October 23, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

In its mid-quarterly monetary policy review last month, the Reserve Bank of India (RBI) made some hasty changes in the interest structure. The repo rate was raised possibly because of the rise in inflation and the marginal standing facility (MSF) rate was cut after the rupee recovered against the dollar. The interest structure is still lopsided with short rates exceeding long rates. This anomaly needs to be corrected.

Was the repo rate hike necessary?

September 21, 2013

The decision of the U.S. Federal Reserve to delay tapering its bond purchases cheered markets, and more so in India because they were convinced of a second bonanza from the RBI. But new Governor Raghuram Rajan gave the markets a jolt by turning hawkish and increasing the repo rate.

Why the RBI should cut rates again

June 10, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

In May, the Reserve Bank of India (RBI) had hesitatingly cut the repo rate by 0.25 percent, which made no impression on the stock market or commercial banks. That was because both expected the cut to be more substantial. But the RBI had not obliged.

Need to bring repo rate in line with inflation

April 29, 2013

(Any opinions expressed here are those of the author and not of Thomson Reuters)

For nearly three years now, the Reserve Bank of India (RBI) monetary policy has had a single target. The presumption is that only when inflation is below the tolerance limit can the interest rate be made normal.

RBI policy: Cut in repo rate imperative

October 23, 2012

(The views expressed in this column are the author’s own and do not represent those of Reuters)

RBI makes the right policy call

June 20, 2012

(Rajan Ghotgalkar is Managing Director of Principal Pnb Asset Management Company. The views expressed in this column are his own and do not represent those of either Principal Pnb or Reuters)

Should the RBI delay a rate cut?

May 23, 2012

(The views expressed in this column are the author’s own and do not represent those of Reuters)