Experts said, generally, in an easing cycle banks tend to reduce the interest rates on deposits faster than on loans to protect their margins
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
January US job openings dip, but still high at 10.8 million
Central bank Governor P Nandalal Weerasinghe said with the rate increase all "prior actions" have been fulfilled and he was hopeful of the IMF bailout being approved within this month
Strong US consumer demand and a tight labour market would force the central bank to battle inflation for longer
ECB President Christine Lagarde has already said the bank till hike rates, if needed
'In the past two meetings, the size of the rate increases have come down'
"You don't need to keep on raising nominal rates as long as inflation does not come down because then you will definitely overshoot in terms of real rates," Goyal said
Disinflation can't rely only on food, must be firm in inflation fight, says RBI Das
Bonds allocated at coupon of 8.2% with call option on Feb 2033
Lender announces decision after central bank last week raised the repo rate to 6.50%
The deposit and lending rates are directly proportional to the repo rate, and they generally go up if the benchmark rate is hiked
Policy rate increased by 25 bps to a 4-year high of 6.5%
Analysts are of the view that after delivering the seventh hawkish policy on Wednesday the central bank may pause after delivering a likely 25 basis points increase in the April review. For Abheek Barua, the chief economist at HDFC Bank, the 25 bps repo hike and keeping its withdrawal of accommodation stance unchanged are on expected lines, the policy tone was hawkish as the RBI-MPC has recognised that they are still away from achieving their objective of durable disinflation, which still looks distant as the core inflation continues to remain sticky. Even as headline inflation is likely to moderate over the coming months, core inflation could remain sticky, and if the RBI chooses to continue seeing signs of durable moderation in core inflation as a yardstick for policy tightening, another 25 bps rate hike in April is likely. But we see a change in stance to neutral is unlikely until the RBI pauses its rate hike cycle, Barua said. He said that the more-than-expected hawkish stance w
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The MPC's optimistic growth outlook for H2 FY2024 augurs well for the credit demand for the banking sector as well as the lenders, said Karthik Srinivasan of Icra
RBI MPC: Shaktikanta Das said that the repo rate hike of 25 bps is considered appropriate at this juncture but the monetary policy will remain agile to inflation
Need to see decisive decline in inflation, core inflation still sticky, says RBI governor
The impact will be short-term, and the boost in budgetary allocations towards infrastructure will keep the demand robust
RBI monetary policy: In December, Das had said that despite consecutive rate hikes, core inflation had continued to remain 'sticky'