Tag: repo rate

FINANCIAL MARKETS, MONETARY POLICY

FIIs Investment in Debt: Preferred destination for Investors

Central banks around the world have taken up the path to contain inflation. The policies adopted by banks have resulted in rising bond yields sitting at four-and-a-half-year high levels. The Indian bond market is no different and has attracted foreign investors and turned them into net buyers after a gap of two years. Foreign Institutional Investors (FIIs) have purchased $ 840 million worth of Indian … Continue reading FIIs Investment in Debt: Preferred destination for Investors

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Banking and Finance, MONETARY POLICY

Bank liquidity deficit: An overview of the current scenario

Liquidity is one of the crucial components of any banking system. To articulate its importance, it is safe to say that any bank’s growth, development, and survival depends on the liquid assets it holds. These assets are crucial to efficiently perform their daily obligations such as meeting depositors’ demands or withdrawals, settling wholesale commitments, and provision of funds when borrowers draw on committed credit facilities. … Continue reading Bank liquidity deficit: An overview of the current scenario

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Banking and Finance, FINANCIAL MARKETS, MONETARY POLICY

Monetary Policy Report, April 2021: An Overview

The Monetary Policy Committee (MPC) of the RBI, which is tasked with fixing benchmark interest rates in India, had recently met and deliberated on the overall macroeconomic scenario of the country. Considering the ongoing COVID-19 pandemic and other financial developments in the domestic and global economy, the MPC had unanimously voted to keep the policy repo rate unchanged at 4%. The RBI Governor, Mr. Shaktikanta … Continue reading Monetary Policy Report, April 2021: An Overview

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2 MONTHS-2 HIKES REPO RATE ON RISE

“Economy does not lie in sparing money, but in spending it wisely” -Thomas Henry Huxley With just a single odd to five favors, The Monetary Policy Committee (MPC), on August 1, 2018, agreed to raise the Repo Rate* to 6.5% by 25 bps. This was the second consecutive hike within just two months, the former being raised after almost 4 years in the month of … Continue reading 2 MONTHS-2 HIKES REPO RATE ON RISE

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