Cut in MSF, RBI to monitor CAD and Inflation(WPI)- Bank Policy and Mid Quarter Review (September 2013)

RBI followed Fed into the ever present snare of having lost the confidence of the markets when it decided to recalibrate repo rates while decreasing MSF rates to 9.5%. The Repo rate at 7.5% in fact allows the 200bp cover on the normal MSF as it now stands exactly at 9.5% but the markets were

Bank Policy Tuesday: Policy Rates unchanged, CRR cut by 0.5%

Banks might pull back on the liquidity window, Apparently RBI was not worried on the missuse of the additional liquidity  in the constrained liquidity conditions. India’s CRR is now less than 6% at 5.5% and is likely to stay at the lower rates FY12 GDP forecast cut to 7%. Inflation target of 7% likely to

Bank Policy Tuesday: RBI Governor announces policy in an hour

Policy today is likely to disappoint market pressures on the central bank in just an hour while the mood could have been upbeat otherwise, it is now driven by policy expectations and a sharp ‘inhuman ‘ touch on unchanged policy pronouncements can catch market business operators bys urprise. Policy is likely unchanged even for CRR

India Bond Impact ( Fixed Income Report) : RBI sticks to CRR, likely no cuts in CRR, SLR

RBI stuck to its plan for India’s monetary policy not bowing to FI market commentators and probably internal pulls as it refused to consider reserve requirements cuts like China in the period it waits out a bottoming of inflation expectations before considering interest rate cuts The CRR is 6% currently except for CBLO, ACU (overseas

September Bank Policy review : Rate hike again!

Update: CRR has been cut 25 bps and there may be more CRR cuts. The channel being fixed the repo rate of 8.25% means a MSF rate of 9.25% and a Reverse Repo rate of 7.25% still be paid out by RBI . A SLR cut of some kind and a SLR deposit rate increase may

Bank Policy Tuesday: Kicking reforms and the inflation poodle

A 50 bp hike, addition of a MSF rate 100 points above the repo rate and the removal of the reverse repo rate as a floater. It would be npow in a fixed channel denoting the lower end of the channel at 100 bp below the repo rate. The market should really welcome this policy