Tag: RBI

Time To Be Proactive

A relatively insignificant event triggered a massive scare in Indian financials on Friday. But, the story does not lie there. It lies in the institutional imperatives clashing with individual investor interests. When there is a problem, either of solvency, liquidity or of risks, it is the bigger investors who bail out…

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Lock into Debt

The purpose of monetary policy is to manage inflation, facilitate growth, and regulate credit in the economy. The RBI’s Monetary Policy Committee (MPC) has a clear mandate to target inflation and maintain it around 4%. In terms of bond markets, 2017 and 2018 are like chalk and cheese. 2017 witnessed…

RBI Monetary Policy – December 2017

StanceThe RBI’s stance on monetary policy is crystal clear. In the last year, the challenges have been to manage excess liquidity, anaemic growth, low inflation, and the NPA crisis. The RBI acknowledges that any outcome is possible from this point and therefore chooses to maintain its neutral stance. Effectively, monetary policy decisions will be data-driven. Keeping this in mind, the reserve bank has left key rates unchanged.

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