RATES STANCE
Budget may include implementation of global minimum corporate tax rate
Union Budget Tax Expectations: India’s adoption of OECD's Pillar 2, implementing a 15% GloBE tax rate for multinationals, may be announced. This could benefit MNEs through rules like Income Inclusion. Insights from Akhilesh Ranjan and MSKA highlight GIFT city implications. Abhishek Goenka notes UAE's 9% rate advantage. Provisions may enter India's Income-tax Act or involve stakeholder feedback. Effective compliance is key.
Expect retail inflation to remain close to 5%: SBI Research report
India's retail inflation is projected to stay under 5.0 per cent for the rest of 2024-25, aside from September, as per SBI Research. June saw an increase in inflation to 5.08 per cent, led by higher food costs. States like Odisha, Bihar, and Karnataka had inflation rates surpassing the national average. SBI Research anticipates the RBI to reassess its policy stance around September due to declining US inflation potentially prompting a rate cut.
Food on boil, inflation rises to 4-month high of 5.08% in June; May factory output highest since October
India's retail inflation surged to a four-month high of 5.08% in June, up from 4.8% in May, driven by a sharp increase in food prices which reached a six-month high of 9.36%. This exceeded expectations, as a recent poll had projected inflation at 4.7%. Concurrently, the Index of Industrial Production (IIP) indicated robust growth, rising to a seven-month high of 5.9% in May, fueled by gains in electricity generation and mining sectors.
Expect US Fed to cut interest rates in September: Anurag Singh
My sense is that ultimately the 10-year, even by the end of next year, goes till say about 3.5%, that is an attractive number for US investors, but that is not attractive enough for them to really open the floodgates investing into emerging markets.
Question of change in stance on interest rate quite premature given present level of inflation: RBI Guv Das
Reserve Bank of India Governor Shaktikanta Das stated that any consideration of changing the interest rate stance is premature, emphasizing the significant gap between current inflation levels and the targeted 4 percent. In an interview with CNBC-TV18, Das indicated that achieving sustained Consumer Price Index (CPI) inflation at 4 percent remains crucial before revisiting the stance.
Bitcoin jumps above $57K as markets hope for dovish stance from Powell
Bitcoin was trading 2.7% higher at $57,268, while Ethereum surged 5.3% to $3,071. Other prominent cryptocurrencies, including BNB, Solana, XRP, Toncoin, Dogecoin, Cardano, Tron, Shiba Inu, Polkadot, and Polygon, surged by up to 7%.
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Sensex rises over 200 pts, Nifty above 24,350 in hopes of dovish stance from Fed
Indian indices rose as markets expected dovish signals from U.S. Fed Chair Powell. Sensex up 223 points to 80,184, Nifty50 up 59 points. Key gainers included Maruti Suzuki, M&M, Adani Ports, while Tech Mahindra, JSW Steel fell. Soft inflation increased odds of U.S. rate cut to 74%. Century Textiles rose 4%. Budget, Q1 results closely watched.
Commodity Talk: Silver down by Rs 5,000/kg in June. Is it setback to Rs 1 lakh target in 2024?
We do see further corrective moves of upto 2 – 3 % in prices in case US macro cues support the dollar further in near term. However silver is still expected to witness new all time highs this year driven by concerns of 2 rate cuts to persist driving investment demand in white metal.
Gold prices heads for quarterly rise; spotlight on inflation data
In the world of gold investment, tracking prices, inflation data, and the Federal Reserve's stance is key. Market dynamics shift based on factors like GDP estimates, equipment spending, and spot silver prices. Understanding these nuances is crucial for making informed investment decisions in a constantly evolving economic environment.
India central bank policymakers divided over rate-growth debate
Internal members maintain hawkish stance on inflation, with Governor Das cautioning against hasty actions for fear of worsening the situation
No rate cut seen in August either, but enough signs of a shift in stance
The minutes of the meeting will be available on June 21. Varma and Goyal have argued that high interest rates might be hindering potential growth. They have previously debated that a high real interest rate—the difference between the actual interest rate and inflation—could be compromising growth.
No rate cut seen in August either, but enough signs of a shift in stance
In the normal course of events, the rising dissent in the MPC should have led to more joining the camp of rate cut seekers as data turns benign. Inflation may not have come back to the 4% target, but it's not threatening to soar. For the US, it is at 3.4% in April when the target is 2%.
RBI MPC Meeting 2024 at a glance: Here's a one-stop guide to all key decisions
The Reserve Bank of India's Monetary Policy Committee (MPC) has decided to maintain the current interest rate at 6.5%, following a 4:2 majority decision. The panel projected real GDP growth for FY25 to be 7.2%, up from 7%. The MPC is also maintaining the Standing Deposit Facility rate at 6.25% and the Marginal Standing Facility bank rate at 6.75%.
RBI MPC Meeting: Das & Co may look at food bills to keep its stance, rate unchanged
RBI Policy Meeting: The Reserve Bank of India (RBI) is expected to maintain the repo rate at 6.5% with a focus on withdrawing accommodation, marking the eighth consecutive time it remains unchanged. Economists predict the unchanged stance, citing persistent inflation in food prices and global commodity price risks. RBI Governor's decision is crucial post-elections.
Past reforms will continue to drive economy over next 2 years: Neelkanth Mishra
In fact, with the RBI dividend being significantly better than what was budgeted, I would not be surprised if in the July budget, the government chooses to bring down its FY25 fiscal deficit target from 5.1% to 4.9% because that money is there.
FPIs may adopt a cautious stance until the election results are clear
Foreign Portfolio Investments (FPI) in India may see a cautious approach until the election results are clear. India's economic performance attracts FPI flows driven by factors like interest rates, inflation, and GDP growth, along with a stable political environment.
How far will BoE move away from Fed's stance? Investors await a clearer signal
A dovish shift in tone by BoE Guv Bailey and Deputy Governor Dave Ramsden in April caused some economists to reckon that the timing of BOE cuts may be closer to the European Central Bank — which is widely expected to act in June — than to the Federal Reserve, whose chief, Jerome Powell, has avoided offering a timeline for US easing.
Apple shares rise after Bernstein analyst takes bullish stance
Apple registered its biggest one-day percentage gain in more than two weeks after the upgrade, which marked the stock's first "buy" equivalent rating from Bernstein's Toni Sacconaghi since early 2018.
Fragile yen could make BOJ's Ueda tilt more towards hawkish stance
The BOJ chief will be mindful of avoiding the episode of 2022, when his predecessor's dovish remarks triggered a yen plunge that forced Tokyo to intervene to prop up the currency.
RBI leaves repo rate unchanged; retains “withdrawal of accommodation” stance
RBI maintains 6.50% repo rate after 3-day meeting, focusing on withdrawing accommodation. Supported by 5 of 6 MPC members. Minimal market impact on Sensex, Nifty 50.
Status quo for the 7th time? RBI MPC may not let rains ruin repo rate, stance this time around
The RBI MPC is expected to maintain the repo rate at 6.5 per cent, focusing on 'withdrawal of accommodation' stance, as per economists. If the RBI sticks to the current rates, it will mark the seventh consecutive time the key lending rate remains unchanged. RBI Governor Shaktikanta Das will reveal the outcome of the bimonthly meeting that began on April 3, with the decision scheduled for April 5 at 10 am.
FTSE 100 hits over 10-month high on Fed stance boost; BoE decision eyed
London equities opened higher on Thursday as investors welcomed the Federal Reserve sticking to its three rate-cut stance for 2024, while they switched focus to the Bank of England's monetary policy update.
ET Explainer: The RBI's liquidity stance and its effect
The Reserve Bank of India's liquidity stance is not convincing experts. It follows a corridor liquidity management system with repo rate as the ceiling and reverse repo rate as the floor. Factors causing tight liquidity include withdrawal of accommodative stance, credit growth surpassing deposit growth, fund constraints, slower government spending, and Ukraine war impacting forex reserves.
RBI MPC Meet: J R Varma dissents on both rate and stance decision this time
Prof Jayanth R. Varma voted to reduce the policy repo rate by 25 basis points. While other members Shashanka Bhide, Ashima Goyal, Rajiv Ranjan, Michael Debabrata Patra and Shaktikanta Das voted to keep the policy repo rate unchanged at 6.50 per cent.
RBI holds rates; monetary stance change, rate cuts must wait
The Reserve Bank of India (RBI) has maintained interest rates and monetary stance steady for the sixth consecutive monetary review meeting, amid geopolitical tensions and uncertain food prices. The central bank forecasts the economy will repeat its performance next fiscal, expanding at 7%, and inflation will remain above the target at 4.5%. The panel's focus on the withdrawal of accommodation has led to cracks in the Monetary Policy Committee, with both decisions voted 5 to 1.
RBI MPC Meet: Interest rates expected to hold steady, possible shift to neutral stance amid tight liquidity conditions
RBI MPC Meet: The 12 respondents unanimously predicted that the Monetary Policy Committee (MPC) would keep the repo rate unchanged at 6.50% at the end of its February 8 meeting. They said the panel will maintain the status quo on rates for the sixth consecutive time. The repo rate is the rate at which the RBI lends funds to banks.
RBI may change policy stance to 'neutral' on easing core inflation: Economists
India's sustained fall in core retail inflation and subdued inflationary pressures could prompt the Reserve Bank of India (RBI) to ease its policy stance to 'neutral' next month. Economists believe a shift in stance is likely based on the inflation outlook, global financial conditions, and liquidity situation.
Goldman sees India to Australia easing policy earlier after Fed
Central banks across the Asia-Pacific, including India, are poised to adjust interest rates earlier than expected due to the Federal Reserve's swifter easing cycle. Goldman Sachs predicts rate cuts starting in the second and third quarters of the upcoming year for Indonesia, Taiwan, India, Australia, and New Zealand, yet foresees milder adjustments compared to the Fed's anticipated cycle.
RBI holds interest rates and monetary policy stance for the fifth straight meet
The RBI raised its economic growth forecast for FY24 to 7%, up from 6.5 percent; inflation estimate was left unchanged at 5.4 percent. The repo rate, or the rate at which the RBI lends to banks, remains at 6.5 percent and all the other rates remain where they are. An ET poll of 10 market respondents had forecast a status quo on policy rates.
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