• Home
  • About Team
  • Privacy Policy
  • Contact Us

GoSportTimes

  • Money
  • Entertaiment
  • Industry
  • Science
  • Sports
  • World Media

RBI rate cut: Here's what the experts expect

  • by Emilio Sims
  • in Money
  • — Feb 8, 2017
Share:

Kristin Forbes, one of the nine rate-setters on the Bank's Monetary Policy Committee (MPC), signalled she was inching closer to voting for a rate hike after becoming increasingly "uncomfortable" with surging inflation given the economy's resilience since the Brexit vote.

A survey of economists from 10 banks conducted by the Mint newspaper says that slowing inflation and a fiscally responsible budget could prompt the RBI to cut interest rates. As a base case, we look for a 25 basis points rate cut in the repo rate to 6.0 percent on Wednesday.

She said: "I believe that the MPC should be nimble and willing to quickly adjust the appropriate path for monetary policy in either direction as needed throughout this period - even if it means reversing recent adjustments to bank rate".

While announcing its monetary policy review last month, the RBI, acknowledging the demonetisation factor, lowered its gross value added growth estimates for the current fiscal to 7.1% from 7.6% forecast earlier. The lower interest levels should allow better transmission of the RBI's rate cuts, totalling 175 basis points since January 2015.

The analysts are also expecting that RBI may also inform the impact of demonetisation and money circulation related numbers of February 8.

Since the December policy meeting, CPI inflation is well-contained.

Along with other measures like protection of cheap imports, the benefits of the ample liquidity in the banking system must be extended to the firms grappling with the old loan books without much delay, it said.

Ms Forbes said even if the Bank did raise rates, the other measures launched previous year to boost lending to households and businesses would "still leave a substantial amount of monetary support for the economy".

"Although the Fed is expected to only gradually raise rates in 2017, pressure on emerging market currencies will remain and we expect the RBI to emphasise this while setting policy", he said.

Finance Minister Arun Jaitley while achieving fiscal deficit target of 3.5% set by the government the fiscal, said that for the next financial year, fiscal deficit target would be set at 3.2% of GDP.

Industry body Ficci's views were in line with SBI's research arm, saying that it expected the RBI to maintain status quo and cut rates in the first half of the next fiscal.

"As a majority owner of the banks and as a regulator, both the government and the RBI have roles in advising banks to pass on the commensurate reduction in the interest rates".

Share:

IN CASE YOU MISSED IT

  • Twitter unveils new steps to counter hate speech and abuse
  • Oil prices fall as reviving shale balances OPEC cuts
  • Rosie O'Donnell: I'll play Bannon on 'SNL' if asked
  • YOU MAY ALSO LIKE...

    • Pelosi thanks George Floyd for 'sacrificing your life for justice' 4/21/2021
    • Columbus police officer fatally shoots girl swinging knife 4/21/2021
    • Walter Mondale spoke with Kamala Harris on the day before he died 4/20/2021
    • United States envoy to Russian Federation to fly back amid worsening tensions 4/20/2021
    • McCarthy to Introduce Censure Resolution against Maxine Waters 4/20/2021
    • US warns Russia of ‘consequences’ if Navalny dies in prison 4/19/2021
    • Biden to bar United States banks from issuing Russian sovereign debt 4/16/2021
    • Judge refuses request to acquit Derek Chauvin in George Floyd’s death 4/15/2021
    • Joe Biden proposes summit meeting with Vladimir Putin 4/14/2021
    • US, Iran recommit to indirect talks after sabotage attack on nuclear site 4/14/2021

RELATED NEWS

'Cash me Ousside' girl punches airline passenger
Phil as she confronted her bad behavior, punched a fellow Spirit Airline passenger in the face, according to TMZ . Police arrived to the scene shortly after the fight, and all three women were escorted from the plane.
2/08/2017

Waiting For Modi's Mumbai Rally and 'False Assurances', Says Uddhav Thackeray
The news came days after Shiv Sena announced its separation with ally Bharatiya Janata Party in the Mumbai civic polls. After his return last month, the young campaigner pledged to ensure the defeat of the BJP in the Gujarat polls.
2/08/2017

See videos as tornado touches down in New Orleans East
John Bel Edwards declared a state of emergency in Louisiana after severe weather hit the southeast part of the state on Tuesday. The National Weather Service reports that storm spotters reported a funnel cloud near Baker, Louisiana, around 9 a.m.
2/08/2017

Homeland chief: I should have consulted Congress on travel ban
Kelly said that he was not criticizing any judge but that their considerations were "academic" and possibly in a "vacuum". Trump has repeatedly tweeted that a court order temporarily blocking the ban is leading to "people pouring in".
2/08/2017

Michael Kors Holdings Limited (KORS) Releases Q4 Earnings Guidance
It offers two primary collections: the Michael Kors luxury collection and the MICHAEL Michael Kors accessible luxury collection. The company's last traded volume of 2.87 million shares as compared to it's an average volume of 2.6 million shares.
2/08/2017

YouTube adds mobile video streaming for top talent
The good news is that you don't need to download a separate app to go live - it's built right into the YouTube app. The creator can live stream in portrait or landscape mode, and enable or disable live chat.
2/08/2017

BP profits are on the rise
BP's revenue for the fourth quarter was $52.12 billion, increasing from the $49.23 billion in the same period previous year . BP has been slashing costs in the face of weak oil global oil prices and sliding refining margins.
2/08/2017

Madonna Has Reportedly Adopted Twins From Malawi
However, a Malawi High Court spokesman confirmed today (Feb. 7) that Madge has just been granted permission to adopt. She has a pair of biological children as well in 20-year-old daughter Lourdes Leon and 15-year-old son Rocco Ritchie.
2/08/2017

Study questions how Mars could have supported different water sources
The scientists detailed their findings online today (Feb. 6) in the journal Proceedings of the National Academy of Sciences . Or at least they weren't always arid, since we now know liquid water once existed on the surface of the red planet.
2/08/2017

Panneerselvam meditates at Jayalalithaa memorial
Speaking to media, he said that Jayalalithaa's spirit asked him to reveal the truth and 'that's why I am standing here'. She said that the day Sasikala was elected as legislature party leader of AIADMK was a "very sad for Tamil Nadu".
2/08/2017

    • Top picks

      • Use-of-Force Trainer Testifies in Chauvin Trial4/07/2021
      • 2 people shot, suspect 'down' in Maryland4/06/2021
      • International Monetary Fund 'very much in support' of global minimum corporate tax: Gita Gopinath4/06/2021
      • Toronto schools to close tomorrow for in-person learning until April 184/06/2021
    • Weekly News

      • Buttigieg: 'Now's our chance' for infrastructure plan4/06/2021
      • Florida sheriff evacuates hundreds of inmates amid potential plant collapse4/05/2021
      • State Of Emergency, Evacuations In Florida County Over Wastewater Pond Leak4/05/2021
      • Jordan's Prince Hamza, others 'undermined security': Deputy PM4/05/2021
    • Latest News

      • US President Joe Biden Vows To Withdraw From Afghanistan By September 114/14/2021
      • Egypt shows off finds from 3000-year-old 'lost' city near Luxor4/11/2021
      • Biden Orders Commission To Study How Democrats Can Pack The Supreme Court4/10/2021
      • Medical examiner stands by homicide conclusion for Floyd's death4/10/2021
    • Home
    • About Team
    • Privacy Policy
    • Contact Us

    Wednesday 21 April 2021

    © 2021 GoSportTimes. ALL RIGHTS RESERVED.