Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / News/  Monetary Policy 2012-13
BackBack

Monetary Policy 2012-13

Monetary Policy 2012-13

Premium


A gamble on growth

Banker’s Trust | Tamal Bandyopadhyay

Click here to read full column

Tamal Bandyopadhyay is Mint Deputy Managing Editor in Mumbai

•••••••

Interview | D. Subbarao : We are not ruling out a rate increase

By Tamal Bandyopadhyay & Joel Rebello

Reserve Bank of India (RBI) governor D. Subbarao said in an interview that the decision to cut the policy rate by 50 basis points (bps) was taken based on current data and is a strong signal to banks to cut loan and deposit rates. In future, all options are open, including further rate cuts or even a hike, depending on inflation-growth dynamics.

Click here to read full interview

•••••••

Quick Edit | Crossing the line

•••••••

A surprise from RBI

By Anil Padmanabhan

Well, RBI just surpassed expectations and delivered a 50 basis cut in the repo rate. So the obvious question is whether this would spark the growth revival and an end to the bad run of the last two years?

Click here to read full column

Anil Padmanabhan is Deputy Managing Editor of Mint

•••••••

A strong signal to cut lending rates

By Sonal Varma

The Reserve Bank of India’s (RBI’s) surprise 50 basis points (bps) cut sends a strong signal to banks to reduce their lending rates as growth takes policy priority over inflation. To a large extent, RBI has front-loaded its rate cuts, which is prudent, given the lags in policy transmission. The question is, “What’s next?" A number of factors argue against further substantial policy easing.

Click here to read full column

The author is executive director and India economist, Nomura Financial Advisory & Securities India Pvt. Ltd

•••••••

RBI springs surprise, cuts repo by 50 bps

By Dinesh Unnikrishnan & Anup Roy

Click here to read full story

•••••••

Central bank playing with fire

By Jahangir Aziz

Click here to read full column

The author is India chief economist, JPMorgan Chase.

•••••••

Focus on the term structure of rates

By Srinivas Varadarajan

Ten-year government bond yields hit a high of 14% in 1996 and dropped to 5% in 2005. Currently at 8.4%, they are at an inflection point. Despite the 50 basis points (bps) rate cut, I see structurally high long-term rates. A couple of reasons drive this view.

Click here to read full column

The author is principal—India, Mount Nathan Advisors

•••••••

There is scope for a further 50 bps cut

By A. Prasanna

The central bank delivered a big surprise to the financial markets by cutting the repo rate by 50 basis points. The action was clearly at odds with the tone of Monday’s macroeconomic review and the March mid-quarter review statement. Based on these documents, the common perception was that the Reserve Bank of India (RBI) was quite concerned about inflation risks and would, therefore, proceed cautiously in cutting policy rates. One basis point is one-hundredth of a percentage point.

Click here to read full column

The author is chief economist, ICICI Securities Primary Dealership

•••••••

Central bank still worried about prices

By Anup Roy & Dinesh Unnikrishnan

The Reserve Bank of India (RBI) on Monday cautioned that inflation in Asia’s third largest economy will remain sticky in the current fiscal and chances of any significant moderation are low, even as it expects a modest recovery in growth.

Click here to read full story

•••••••

Not much room for RBI to cut rates

By Niranjan Rajadhyaksha

The Indian central bank could announce a small rate cut on Tuesday, as a peace offering to the finance minister as well as a signal to the financial markets, but that will leave it with even less wiggle room through the rest of the fiscal year. It seems very unlikely right now that we will see more than 75 basis points of cumulative cuts over the next 12 months. So Subbarao will have to make his moves carefully.

Click here to read full column

Niranjan Rajadhyaksha is Executive Editor of Mint

•••••••

A cut without conviction?

Banker’s Trust | Tamal Bandyopadhyay

Most economists expect the Indian central bank to cut its key rate, for the first time in three years. Subbarao will probably oblige them, but RBI doesn’t seem to be fully convinced as yet that inflation will stay low for long, even though the risks to growth have increased.

Click here to read full column

Tamal Bandyopadhyay is Mint Deputy Managing Editor in Mumbai

•••••••

What has changed since the last monetary policy review?

Mark to Market | Manas Chakravarty

First, this is what the central bank said about the global outlook: “While the recovery in the US has been progressing, economic activity in the euro area has contracted… Sluggish global economic activity, uncertainty in the euro area and rising crude oil prices will hamper growth prospects of EDEs (emerging and developing economies)." That environment hasn’t changed much, except that recent data out of the US shows the recovery there is still weak. On the positive side, oil prices haven’t gone up any further. But export growth has been weakening, while the current account deficit has been widening. Portfolio inflows have turned jittery after the government’s bid to impose general anti-avoidance rules.

Click here to read full column

•••••••

Limited choices | ( PDF )

•••••••

Softer stance on rates called for

By Ajit Ranade

Click here to read full column

The author is chief economist, Aditya Birla Group

•••••••

Ourview | Monetary policy: the chicken and egg game

By Tamal Bandyopadhyay

Click here to read full column

Tamal Bandyopadhyay is Mint Deputy Managing Editor in Mumbai

•••••••

Inflation not tamed yet

By Leif Eskesen

Click here to read full column

The author is chief economist for India and Asean HSBC Global Research

•••••••

Beyond interest rate cuts

By Siddhartha Roy

Click here to read full column

The author is economic adviser, Tata group

•••••••

Rate cut will be a close call

By Samiran Chakraborty

A file photo of RBI governor D Subbarao.

Click here to read full column

The author is regional head (research), India, Standard Chartered Bank

•••••••

The carrot and the stick

By Richard Iley

The policy choices before the Reserve Bank of India (RBI) in the run-up to its 2013 annual monetary policy remain vexing. Its dominant concern and indeed constraint is that the policy mix, the blend of monetary policy and fiscal policy that necessarily shapes the economy’s performance, remains sub optimal. Despite the central bank’s increasingly loud exhortations for fiscal consolidation, the government borrowing has remained uncomfortably high in recent years.

Click here to read full column

The writer is chief economist Asia BNP Paribas SA

•••••••

RBI must innovate to manage crunch

Banker’s Trust | Tamal Bandyopadhyay

We are a week away from the Reserve Bank of India’s (RBI) annual monetary policy for fiscal 2013. Two sets of critical data—factory output for February and inflation in March—will be released before the policy, and both have a bearing on its theme. At this point, what is crystal clear is that partial devolvement of the year’s first bond auction is not a happy omen, and the Indian central bank will have a challenging year ahead grappling with tight liquidity and a record government borrowing.

Click here to read full column

Tamal Bandyopadhyay keeps a close eye on all things banking from his perch as Mint’s deputy managing editor in Mumbai

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 18 Apr 2012, 11:43 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App