Key Points
Financial markets, in the business of reading the future from the present, were excited that interest rate increases are behind after the RBI did not raise rates. But Governor Shaktikanta Das snatched the candy back in less than a minute.Reuters..
The Reserve Bank of India's (RBI) approach to interest rates Thursday brings back memories of Rao...
While the Governor's utterances may have nullified the pleasant surprise of inaction on interest rates, many of the data points and the forecast from the central bank point to another direction that could leave rates where they are for a while...
The primary driver behind India's inflation targeting framework after the 2013 currency crisis was to prevent dislocation in financial markets due to negative real returns for savers...
"With the likely softening of CPI to low- to mid-5% levels in the coming months, the current repo rate of 6.5% implies that India's real policy rate will hover around 1% during 2023-24, while maintaining a policy rate differential of about 1.5% with the US," said Siddhartha Sanyal, economist at Bandhan Bank..
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