Rafael's Feed
Mar 4, 2015

RBI surprises with early post-budget rate cut

MUMBAI (Reuters) – The Reserve Bank of India (RBI) lowered its policy repo rate by 25 basis points to 7.5 percent on Wednesday, its second inter-meeting cut this year on the back of easing inflation and what it said was the “weak state” of parts of the economy.

Although markets had broadly expected the RBI to cut rates again after its surprise January easing, few had expected a move as early as this week, just days after the government presented its annual budget for the coming fiscal year.

Mar 4, 2015

India’s central bank surprises with early post-budget rate cut

MUMBAI (Reuters) – India’s central bank lowered its policy repo rate INREPO=ECI by 25 basis points to 7.5 percent on Wednesday, its second inter-meeting cut this year on the back of easing inflation and what it said was the “weak state” of parts of the economy.

Although markets had broadly expected the Reserve Bank of India to cut rates again after its surprise January easing, few had expected a move as early as this week, just days after the government presented its annual budget for the coming fiscal year.

Mar 4, 2015

India’s c.bank surprises with early post-budget rate cut

MUMBAI, March 4 (Reuters) – India’s central bank lowered its
policy repo rate by 25 basis points to 7.5 percent
on Wednesday, its second inter-meeting cut this year on the back
of easing inflation and what it said was the “weak state” of
parts of the economy.

Although markets had broadly expected the Reserve Bank of
India to cut rates again after its surprise January easing, few
had expected a move as early as this week, just days after the
government presented its annual budget for the coming fiscal
year.

Mar 2, 2015

India overhauls monetary policy using inflation targets

MUMBAI/NEW DELHI (Reuters) – India’s government and central bank have agreed to commit to inflation targeting, in the biggest change to monetary policy since India’s economy was opened up more than two decades ago, putting priority on subduing almost chronically volatile prices.

In a document dated Feb. 20 but published on the ministry website on Monday, the two sides set a consumer inflation target of 4 percent, with a band of plus or minus 2 percentage points, for the financial year ending in March 2017.

Feb 3, 2015

RBI holds steady, pushes banks for lower lending rates

MUMBAI (Reuters) – The Reserve Bank of India (RBI) held interest rates steady on Tuesday, while boosting banks’ liquidity in a bid to persuade them to lower lending rates after they failed to pass on the benefits of the last official rate cut three weeks ago.

The RBI kept its policy repo rate unchanged at 7.75 percent, as expected by analysts, leaving its next reduction probably until after the government presents its annual budget at the end of this month.

Feb 3, 2015

India’s RBI holds steady, pushes banks for lower lending rates

MUMBAI, Feb 3 (Reuters) – India’s central bank held interest
rates steady on Tuesday, while boosting banks’ liquidity in a
bid to persuade them to lower lending rates after they failed to
pass on the benefits of the last official rate cut three weeks
ago.

The Reserve Bank of India kept its policy repo rate
unchanged at 7.75 percent, as expected by analysts, leaving its
next reduction probably until after the government presents its
annual budget at the end of this month.

Jan 30, 2015

BSE slashes fees in FX derivatives battle with NSE

MUMBAI (Reuters) – India’s oldest stock market operator, BSE Ltd, is slashing fees to gain ground in new markets, turning currency derivatives into the latest battleground in its long-standing rivalry with the younger but larger National Stock Exchange.

BSE said the derivatives move was part of a strategy that accepted sacrificing potential profit margins to build volume, as it aims to become a more dominant player beyond bread-and-butter equities trading.

Jan 30, 2015

India’s BSE slashes fees in FX derivatives battle with rival NSE

MUMBAI, Jan 30 (Reuters) – India’s oldest stock market
operator, BSE Ltd, is slashing fees to gain ground in new
markets, turning currency derivatives into the latest
battleground in its long-standing rivalry with the younger but
larger National Stock Exchange.

BSE said the derivatives move was part of a strategy that
accepted sacrificing potential profit margins to build volume,
as it aims to become a more dominant player beyond
bread-and-butter equities trading.

Jan 15, 2015

RBI makes surprise early rate cut, more expected

MUMBAI (Reuters) – The Reserve Bank of India (RBI) surprised markets with a 25 basis point cut in interest rates on Thursday and signalled it could do more, amid signs of slowing inflation and what it said was a government commitment to contain the fiscal deficit.

While the early move was unexpected, aggressive reductions in rates have been expected over the course of the year to help India’s economy out of a rut, with growth rates struggling to recover from their weakest levels since the 1980s.

Jan 13, 2015

Investors may cut India slack on deficit target, if budget credible

MUMBAI (Reuters) – Indian bond yields may not spike if the government opts to increase spending when it unveils its annual budget in late February, so long as the deficit target is widened to no more than around 4 percent and fiscal consolidation steps are taken.

Some government economic advisers have recommended Finance Minister Arun Jaitley should row back on a fiscal deficit reduction plan that would aim to bring the deficit down to an eight-year low of 3.6 percent of GDP in the fiscal year starting in April.

    • About Rafael

      "Rafael Nam is the Chief Markets Correspondent for India, overseeing markets and chat room coverage across stocks, debt and fixed income. He has recently started tweeting at @rafaelnam"
    • Follow Rafael