Fitch Solutions sees RBI keeping benchmark interest rates unchanged during the fiscal to March 2022 following its decision to buy Rs 1 trillion of government bonds
RBI should not undermine the price and financial stability objectives
Overall RBI monetary policy was on expected lines and the policy statement highlighted its commitment to do whatever it takes to ensure financial stability
The policy, being the first in the fiscal year, could have many important policy measures spelled out
The Congress hit out at Finance Minister Nirmala Sitharaman on Thursday after she announced withdrawal of the interest rate-slashing order
The rate of interest on PPF has declined from 7.1 per cent earlier to 6.4 per cent now
No interest on interest on moratorium loans
SBI home loan interest rates start from 6.7% for loans up to Rs 75 lakh and 6.75% above Rs 75 lakh; the lender is also offering 100% waiver on processing fees
10-year government bond yield hardened to 6.23 per cent on Friday, up 0.05 per cent from 6.18 per cent on Thursday, February 25
Despite near record low interest rates, the pricing of state government bonds skyrocketted to an 11-month high of 7.19 per cent, at the latest auction of Rs 23,806 crore market borrowings on Tuesday
The six-member MPC kept interest rates on hold, but said it will keep its stance accommodative to support the government's huge borrowing programme
Normally, the market eats out of the RBI Governor's hands but the size of the govt borrowing is killing its risk appetite
The Bank of England kept its key interest rates on hold Thursday
Rise in interest rates could hit corporate earnings, hinder economic recovery
The committee is likely to hold interest rates steady and continue with an accommodative policy stance
Beyond hype, if the Budget creates a platform for growth, the RBI will have to change the policy's stance, but that won't happen - now or even in April
The reason why short-term rates have spiked is liquidity normalisation
The share of floating-rate bonds has fallen to low-single digits
The rates have not been changed since September 1, 2020; status quo to help Centre raise additional resources, says Icra economist
Under this mechanism, the government issues recapitalisation bonds to a public sector bank which needs capital. The said bank subscribe to the paper against which the government receives the money