Top
Begin typing your search above and press return to search.
keyboard_arrow_down
Login
exit_to_app
Farmer rage and Opposition parties
access_time 19 Sep 2020 6:51 AM GMT
access_time 19 Sep 2020 3:50 AM GMT
Going beyond birthday celebration
access_time 18 Sep 2020 6:05 AM GMT
Periyar@142-Revolutionary and Visionary
access_time 17 Sep 2020 11:57 AM GMT
The word of caution from the highest court
access_time 17 Sep 2020 6:31 AM GMT
access_time 16 Sep 2020 5:58 AM GMT
DEEP READAll arrow_drop_down
The ogres in the mind
access_time 8 Sep 2020 11:27 AM GMT
Why worry about populism?
access_time 4 Sep 2020 9:51 AM GMT
Media mind-set towards minorities
access_time 15 July 2020 4:29 PM GMT
exit_to_app
Homechevron_rightBusinesschevron_rightRBIs nudge likely to...

RBI's nudge likely to come sooner than expected: Experts

text_fields
bookmark_border
RBIs nudge likely to come sooner than expected: Experts
cancel

Mumbai: With the rising coronavirus (COVID-19) cases in India and abroad, a policy rate cut expectation is fast gaining currency, especially after the US Federal Reserve slashed its benchmark policy rates by 50 basis points in an emergency move on Tuesday.

The Reserve Bank of India (RBI) has already dropped hints of a rate cut, saying that it is monitoring global and domestic developments closely and continuously and stands ready to take "appropriate actions" to ensure the orderly functioning of financial markets.

"With new evolving information, the nudge is likely to come sooner than before. The RBI, on its part, has a dominant revealed current preference for bringing back credit growth. It is also noteworthy that the RBI put out an assurance statement with respect to evolving developments, despite already being in the midst of substantial incremental non- traditional monetary easing," Suyash Choudhary, Head - Fixed Income, IDFC AMC said in a note.

HDFC Bank's Chief Economist Abheek Barua also said that: "I suspect that over the next few days we will see some kind of response from the RBI, whether it is tomorrow itself or not is an open question."

"I think RBI Governor (Shaktikanta) Das will go with the rest of the central banks and if not tomorrow, over the next few days... if other banks were to cut, I think RBI will also follow."

Experts said that it is reasonably obvious that more widespread global easing should be forthcoming. This was indicated somewhat by the Fed Chair in the press conference but also for the reason that no other major economy can afford a tightening in their relative financial conditions with respect to the US.

So now that the US has moved, other banks may anyway have to move as well. However, the quantum and form will depend upon space and format respectively, and individual revealed preferences," IDFC AMC said in a note.

Show Full Article
TAGS:
Next Story