RBI

Bond market waiting for RBI’s review

Bond market waiting for RBI’s reviewThe yields of Indian federal bonds remained almost unchanged as investors wait of the review by India's central bank, the reserve Bank of India (RBI) to determine actions in the market.

The 10-year benchmark bond yield was recorded at the level of 8.21 percent, down 1 basis point this morning at the time of reporting. A volume of worth 30.30 billion rupees were traded on the RBI's electronic trading platform, which is below the average of about 40 billion rupees traded in the first two hours.

India’s inflation falls to 7.47 percent in December 2011

India’s inflation falls to 7.47 percent in December 2011India’s headline inflation fell to 7.47 per cent, it’s lowest in two years, in the month of December 2011, backed by the cheaper prices of food items in the country.

India’s inflation, which is based on Whole Sale Price Index (WPI), was recorded at the level of 9.11 per cent recorded in November. The inflation was recorded at the level of 9.45 percent in December of 2010.

India’s inflation falls to 7.47% in December

India’s inflation falls to 7.47% in DecemberAccording to the latest official data, India’s headline inflation has fallen to the level of 7.47 per cent in December 2011.

Country’s inflation, which is based on Whole Sale Price Index (WPI), was recorded at the level of 9.11 per cent recorded in November. The all comes as a relief to the central bank, the Reserve Bank of India (RBI) and the central government which have taken the stance of higher interest rates in order to control the inflation.

Indian rupee rose to 52.25/26 against US dolalr

Indian rupee rose to 52.25/26 against US dolalrThe Indian rupee has risen to the level of 52.25/26 against the US dollar on Tuesday due to new momentum in by foreign funds.

The foreign funds acquired government debt before limits on the amount of bonds expire in the middle of the month. According to foreign exchange traders, the rise of the rupee was further boosted by a more than 1.5 percent rise in Indian stock market.

India’s food inflation falls below zero to - 3.36 percent

India’s food inflation falls below zero to - 3.36 percentIndia's food inflation has fallen drastically below zero to the level of - 3.36 percent for the week till December 24 as prices of onions, potatoes and vegetables fell in the market, according to the latest data released by the government.

India's food inflation, which is calculated on the bases of the Wholesale Price Index (WIP), was recorded 0.42 percent in the previous week. The food inflation eased due to the improved supplies of essentials and a low base. The prices of essential items like vegetables, onion, potato and wheat declined.

RBI permits relaxation of price band limits for Monday trade

RBI permits relaxation of price band limits for Monday tradeIndia’s central bank, the Reserve Bank of India (RBI) allowed the relaxation of rice band limits of government securities traded on the first trading day of the year.

The Fixed-Income Markets and Derivatives Association (FIMMDA) also changed the price band in order to prevent cancellation of more than Rs 5,000 crore worth of deals made on Monday.

India’s 10-year bond yields fall to two-week low

India’s 10-year bond yields fall to two-week low The yields on India's 10-year bonds fell to its lowest level in two weeks due to perception that the country's central bank might increase cut interest rates for reversing the economic slowdown in the Indian economy.

Government to borrow Rs 40,000 crore

Government to borrow Rs 40,000 croreIndia’s central bank, the Reserve Bank of India (RBI) has said that the government will further borrow Rs 40,000 crore, increasing the gross borrowings for the financial year.

The borrowing from the government may reduce the resources for the private sector, which has already reduced investments due to the global economic uncertainties.

Analysts say that government borrowings will boost the yield on Indian bonds. The benchmark 10-year government bond yield is expected to rise 5 basis points in opening trades on Tuesday following the announcement of the unscheduled auction.

RBI scraps limit on mobile transactions

RBI scraps limit on mobile transactions India's central bank, the Reserve Bank of India (RBI) has announced its decision to do away with the limit of Rs 50,000 per customer per day imposed on mobile transactions.

The limit on mobile transactions was imposed in 2009 by the regulator. Under the new rules, the banks will be allowed to fix their own limit on mobile transactions for customers in the country. The RBI had issued guidelines on mobile banking transactions in India in 2008 and had placed certain monetary restrictions on fund transactions.

Government to borrow $9.5 billion from public sector banks

Government to borrow $9.5 billion from public sector banksThe Indian government has planned to borrow $9.5 billion or about 500 billion rupees from public sector banks in the country, a move that will help reduce the need to increase sales of new bonds and also allow market to maintain its growth.

India’s inflation moderates to 9.11 percent in November

India’s inflation moderates to 9.11 percent in NovemberIndia’s inflation has fallen to the level of 9.11 percent in November from a year earlier, which is its lowest level in a year.

The commerce ministry said in a statement in New Delhi today that the inflation fell to 9.11 percent from 9.73 percent in October this year. The fall in inflation has prompted many to believe that the central bank would half its increase in interest rates and might even consider decreasing its key rates to boost growth in the Indian economy.

India’s banking system has adequate liquidity, RBI

The reserve Bank of India (RBI) has said that it believes that there is adequate level of liquidity in the banking system in India.

The comments from RBI deputy governor KC Chakrabarty came amid concerns that the increased interest rates in the country have died the banking sector of much needed liquidity. When asked if the RBI is considering cutting the cash reserve ratio (CRR) to ease liquidity crunch, he said that the central bank could use any of its tools at any time.

K C Chakrabarty , deputy governor, RBI said: "There is sufficient liquidity in the system. As for cash reserve ratio, the text books say that it is one of the tools that can be used... you should wait for December 16."

RBI allows Credit-Default Swaps

RBI allows Credit-Default SwapsIndia's central bank, The Reserve Bank of India has introduced trading in credit- default swaps in India to attract investors to the country's corporate bond market, a move that would increase inflows into the country and help control the fall in the rupee.

The central bank has also created rules limiting the scope of the market. The RBI now allows domestic lenders and units of foreign banks to purchase credit- default swaps contracts to "hedge" assets and trading positions, according to a notification from the central bank.

Inflation must come down to 5% or below for stabilizing economy, RBI

Inflation must come down to 5% or below for stabilizing economy, RBIIndian central bank, the Reserve Bank of India’s (RBI) Governor, D Subbarao has said that the inflation in the country should fall to five percent or below that level in order to bring stabilization in the economy and facilitate economic growth.

D Subbarao said, "A high-inflation scenario makes both savers and investors uncertain." He said that the monetary tightening policy by the RBI is aimed at restraining demand and anchoring inflation expectations.

RBI relaxes rules to boost inflow of funds to support Rupee

RBI relaxes rules to boost inflow of funds to support RupeeIndia's central bank, the Researve Bank of India has relaxed its regulations to allow companies to borrow abroad and it also increased interest rates for Indians living aboard in order to help contain the fall in the Indian rupee.

Rupee declines 2.4 percent against US dollar

Rupee declines 2.4 percent against US dollarThe Indian national currency has recorded a fall of 2.4 percent against the US dollar on the week due to continuing weak performance by domestic shares and high demand for the American currency from importers.

The partially convertible rupee ended at 51.33/51.34 against the dollar on Friday, weaker than Thursday's 50.90/50.91 after touching the level of 51.41, which was last seen in March of 2009.

RBI deputy governor expects 7.5-7.6% growth this year

RBI deputy governor expects 7.5-7.6% growth this yearSubir Gokarn, a deputy governor of the RBI has said that he expects the Indian economy to grow at around 7.5 to 7.6% in the current fiscal year amid signs of a global economic slowdown.

He acknowledged that the increase in interest rates have affected the growth in the economy. The RBI has been concerned over high inflation in the country and has raised the interest rates 13 times since March last year in order to try to control the high prices of commodities.

Some banks may reduce rates for bulk deposits

Some banks may reduce rates for bulk depositsSome banks in the country have indicated that they might reduce rates for bulk deposits if they raise interest rates on savings account following RBI's deregulation of interest rates.

Indian banks are racing to increase savings account interest rates in order to attract more customers. However, state-run banks appear more cautious in increasing their rates and are waiting for the Reserve Bank of India's final guidelines on savings rate deregulation to finalize their new rates and features for savings accounts.

RBI to evaluate SLR holdings for BASEL III norms

RBI to evaluate SLR holdings for BASEL III normsThe Reserve Bank of India (RBI) has indicated that it will evaluate how much holdings of the banks under the statutory liquidity ratio (SLR) requirements can be considered as capital meeting the requirement for Basel III global banking rules.

The SLR stands at 24 percent but according to analyst estimates, it is about 29 percent of the banks' overall holding of SLR bonds. SLR includes deposits that banks are required to invest by the central bank in government debt and other approved securities.

RBI may decrease Interest rates in December

RBI may decrease Interest rates in DecemberThe Reserve Bank of India (RBI) may consider revising its key interest rates in the month of December on slowing inflation.

C Rangarajan, chairman of the Prime Minister's Economic Advisory Council (PMEAC) has said that he expects the economic growth in the country to be in the range of 7.5-8 per cent and he puts the figures at 7.8 or 7.7 per cent.




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