India, in fact, will be the third nation in the world after the United States and Brazil, where retail participants can take direct exposure on the government bond market
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This is the fourth time in a row that MPC has decided to keep the policy rate unchanged at 4%. The central bank had slashed the repo rate by 115 basis points since late March 2020 to support growth
Higher inflation projection rules out any rate cut possibility in the first half of FY22; bond yield jumps
The other signals expected from the policy related to the rollback of measures announced during the pandemic
The reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with the RBI
The benchmark repurchase rate will be maintained at 4% Friday, according to 24 of the 32 economists in a Bloomberg survey, although cooling inflation has stoked expectations for a rate cut
The Reserve Bank of India will aim to drain 2 trillion rupees ($27.3 billion) of banking funds via a 14-day reverse repo operation on Jan. 15
The rate pause was on expected lines, and all the six members on the Monetary Policy Committee were unanimous on the matter
The point of dissonance is, however, regarding the surplus liquidity sloshing around the banking system and the fear that it might endanger financial stability
Das said the economy was rebounding faster than expected from a coronavirus-induced slump earlier in the year but warned signs of recovery were far from being broad based
Indian shares hit record highs after the country's central bank kept interest rates steady in the face of stubbornly high inflation, while also retaining its accommodative monetary policy stance
The Reserve Bank of India kept key interest rates steady as widely expected amid persistently high inflation, and after a better-than-expected reading on economic growth
The rupee appreciated by 16 paise to 73.77 against the US dollar in the opening session as the Reserve Bank of India maintained status quo on benchmark interest rate for the third time in a row
Economists say inflation would average above 6 per cent this fiscal, and is unlikely to come down below 5 per cent before March.
As the yield curve is very steep, Bhatia expects returns in the near-term to be driven by demand-supply of bonds rather than prospects of change in repo rates
The TLTRO will be for tenors of up to three years and for a total amount of up to Rs 1 trillion at a floating rate linked to the policy repo rate for banks
The decision to rationalise risk weights woule particularly benefit borrowers of higher value loans
Given inflation pressure, there is no doubt that it would be difficult for the MPC to cut rates in the near-term
The cut-off yield was 4 per cent, which is at par with the policy repo rate