The small-caps were hit on the chin with the S&P BSE Small-cap index slipping nearly 7 per cent thus far during in FY23, underperforming the S&P BSE Midcap and the BSE 500 indexes
Current dynamics warrant hike, but central bank should keep liquidity stance flexible
RBI has raised the policy rate by 250 bps since May 2022 to 6.5%, making it the most aggressive policy tightening cycle in a decade
The two key factors which the committee will deliberate intensely while firming up the next monetary policy are elevated retail inflation
Market participants and analysts broadly expect a rate hike of 25 basis points (bps) on April 6, when the country's monetary policy committee (MPC) ends its three-day meet
Indian companies are doing better than peers, but business is slowing down
Overall, 10 developed economies have raised rates by a combined 3,290 basis points (bp) in this cycle to date
The Bank of England focused on fighting inflation, announcing an 11th consecutive interest rate increase Thursday despite concerns about the economic fallout from troubles in the global financial system. Britain's central bank boosted its key rate by a quarter-percentage point to 4.25 per cent, a day after the US Federal Reserve approved a similar move to tame inflation that is crimping household budgets and slowing economic growth. The decision by the bank's Monetary Policy Committee came after the UK statistics agency surprised policymakers Wednesday by reporting that inflation accelerated to 10.4 per cent in February, driven by the cost of food, clothing and dining out. Before the figures were released, many analysts had expected the Bank of England to keep rates on hold following the collapse of two US banks and the ensuing troubles at Switzerland's Credit Suisse, which forced a hastily arranged takeover by rival UBS. The bank will continue to monitor closely indications of ...
The fall in OIS rates mirrored a decline in the 10-year US bond yield, which plunged close to 40 bps after the collapse of SVB
The European Central Bank has carried through with a large interest rate increase Thursday, brushing aside predictions it might dial back as U.S. bank collapses and troubles at Credit Suisse fed fears about the impact of higher rates on the global banking system. The ECB hiked rates by half a percentage point Thursday, underlining its determination to fight high inflation. In a post-meeting statement, the bank called the banking sector in the 20 countries using the euro currency resilient, with strong finances. It says it's monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability in the euro area. ECB head Christine Lagarde said last week that it was very likely the bank would raise its benchmarks by a half-percentage point, part of a series of rapid rate hikes aimed at getting inflation down from 8.5% far above the bank's target of 2%. That was before Silicon Valley Bank in the U.S. went under last we
Analysts expect the underperformance in bank stocks to continue ahead as the current fears around the banking sector globally are likely to persist for some time
She further added that India's inflation was not due to excessive demand and so there is much less tightening needed than the US
Rising interest rates, coupled with this year's rout in the Adani conglomerate's stocks, have also weighed on the local market
Experts see 25 bps hike in April; say wheat output may dip due to heat wave; El Nino may emerge as key determinant of food prices going ahead, if it strikes this summer
Inflation is coming under control. You've got all the right tailwinds for growth. And so we hope that RBI will take a pause on rate hikes, says Sanjiv Bajaj, President, CII
Corporate results indicate improving demand
Federal Reserve Chairman Jerome Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected
All central banks assert they move independently from the Fed. In practice, they tend to replicate broad trends in American credit
Policy makers in Australia, Sweden, New Zealand and Britain joined the U.S. Federal Reserve and the European Central Bank in lifting key lending rates by a total of 250 basis points (bps)
India Ratings in a report on Tuesday said these factors, along with rising inflation rate, will impact borrowers cash-flows, which will also hit the asset quality marginally