Why Only Interest Rates?
(From my Yahoo Piece) The Reserve Bank of India increased interest rates by 0.50% on Tuesday, going beyond the expected 0.25% estimate. The Repo rate is now at 8%, which is the interest that banks need...
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Will The RBI Raise Rates Again?
On Friday, the Reserve Bank of India will release the mid-quarter review of Monetary Policy (12 noon). Will it raise rates again, after 11 consecutive rate raises? We have seen rates rise from the...
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RBI Raises Rates 0.25%: Sep 16, 2011
RBI moves rates up in it’s mid quarter review by 25 bps (0.25%) to 8.25%. This is a continuing anti-inflation stance that RBI has, which means raising rates until there are visible results on actual...
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Chart Of The Day: CRR and SLR History
Banks are supposed to keep a certain portion of their deposits aside in two compartmentalized areas: a Cash Reserve Ratio (CRR) where banks keep cash (not invested in anything) back with the RBI, and a...
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Chart Of The Day: Reserve Money Growth
Reserve Money is the base money of our banking system, a level before the banks come in an multiply it with credit. It consists of the money RBI prints (“currency with the public”), the reserves banks...
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We Won’t See Rate Hikes Stopping Soon
Deepak Mohanty, ED at the RBI talks about inflation and its dynamics. I’d like to discuss part of that article, where he talks about the Inflation trajectory and how it will be determined – and make a...
View ArticleRBI Straddles Growth and Inflation Before Rate Announcement
The latest RBI macroeconomic survey (Oct 2011) precedes their announcement on monetary policy today. Key parts in their outlook: Growth risks have increased on global headwinds, while inflation...
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RBI Raises Rates by 0.25% to 8.5%
RBI has raised interest rates by 0.25%, taking the repo rate to 8.5% and the reverse repo to 7.5%. The repo rate is what banks pay to borrow overnight from the RBI (against the collateral of government...
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Chart Of The Day: Bank FD Rates From 1976
The RBI has provided rates that banks used to give for one year deposits, all the way back to 1976. Here’s a plot of the “high” rates today (9.25 to 10%). Much of the 90s was a 10 to 12% rate, and I...
View ArticleA Simpler Version of the RBI Statement
There is no RBI Rate Cut. There is no CRR cut. The RBI, in its mid-quarter review of monetary policy, decided that the situation warranted no change in any of the rates. I was partly there; I expected...
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WPI Inflation for Nov 2012 Falls to 7.24%
Inflation based on the Wholesale Price Index (WPI) fell to a low 7.24% in November. However, remember that these are preliminary figures and subject to revisions later. If you look at the past data,...
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RBI Cuts Repo and CRR by 25 bps
Continuing the paused rate cut cycle, RBI cut the repo rate (at which banks borrow overnight from the RBI) by 0.25% to 7.75%. In addition, it brought the Cash Reserve Ratio (CRR), the percentage of...
View ArticleRBI Cuts Repo by 0.25%, Market Expected More
The RBI has cut the Repo rate by 0.25% in a move that was more or less expected (I actually thought they might not cut this time, given Subbarao's speech). The Repo rate is the rate at which banks...
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RBI Cuts Rates by 0.25% to 7.25%
In the 2013-14 Macroeconomic Policy the RBI has decided to cut rates by 25 basis points (0.25%), bring the repo rate down to 7.25% and reverse repo to 6.25%. The Cash Reserve Ratio (CRR) remains...
View ArticleRBI cuts rates by 0.5%
RBI has cut interest rates by 0.5%. The repo rate is now 5% and reverse repo at 3.5%. The 10 year bond yield had spiked back to 6.46% after a few days of continuous falling down to 6.3%. That was …
View ArticleRBI cuts rates by 0.25%
The Reserve Bank of India, in its credit policy today… announced a rate cut of 0.25% on both repo and reverse repo rates, to 4.75% and 3.25% respectively. The 10 year bond yield fell to 6.17%, after...
View ArticleRBI Mandates Single Base Rate for Banks
RBI has decided to curb the current practice of banks using different benchmark rates for different customers. From April 1, 2010 all banks will have to use a single base rate that will be the...
View ArticleEnding the Teaser Game, Hiking Rates
ICICI and HDFC hike auto loan rates, end teaser loans for housing loans: [The] country’s two leading private lenders ICICI Bank and HDFC Bank on Thursday raised lending rates for auto loans, in a clear...
View ArticleRBI Raises Rates by 0.25%
As widely expected, the Reserve Bank of India has raised rates by 0.25% – of both the Repo and Reverse Repo, to 5% and 3.5% respectively. Note however that there has been almost no demand for repo in...
View ArticleGovernment Debt: A Visual Analysis
Our government is going to issue a truckload of bonds next year, so let’s see where we are right now with respect to current bonds outstanding. Total Bonds Issued: 18,26,501 cr. (18.26 trillion,...
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