In these times of infl ation and the receding prospect of growth, and in the presence of fi scal laxity and higher government borrowing requirements, Indian banks are fi nding it diffi cult to expand...
Money Markets
The Reserve Bank of India's monetary policy for 2012-13 has had to be framed at a time when the economy is facing multiple risks - infl ation at an elevated level, a deterioration in the external...
The postponement of fi scal consolidation, as is evident from the Union Budget, 2012-13, is likely to add pressure to the external sector balance and enhance the risk of managing the trade-off...
An attempt is made here to reclassify the commodities covered by the Wholesale Price Index series, first, into two groups, namely, the consumer and non-consumer items, and then further split them...
This review analyses the trends in certain crucial parameters pertaining to the market borrowings of the centre and the states. It argues that the latter have made efforts to contain their borrowing...
Before the global financial crisis, central bankers depended mainly on interest rates in policymaking and operations; in the post-crisis period when liquidity became a binding constraint, liquidity...
Deregulation of the interest rate on savings bank deposits will allow more room for non-price competition for improving the quality and diversification of customer service rather than result in a...
Is the mid-year monetary review by the Reserve Bank of India going to see a pause in the rate hike, implying that policy rates have now peaked? This note tracks the past experience with policy rate...
A review of fiscal developments during the current financial year, an assessment of the possibility of failure to achieve the fiscal deficit target, and, in case of a slippage, an examination of its...
The downgrade of US debt is the second shock to hit the Indian financial markets after the 50 bps hike in repo rates by the RBI on 26 July 2011. While concerns have been raised about the resulting...
Despite the series of policy rate hikes and the corresponding hike in lending rates, the demand for bank credit seems to be robust. The banking system should be allowed to meet this demand in a non-...
The expansion in the life insurance sector in the post-deregulation period has seen a disproportionate growth of unit-linked insurance plans. However, ULIPs have little value in promoting long-term...
The policies for directed credit that were introduced in the 1970s accorded significant priority to agriculture, exports and micro, small and medium enterprises. However, the present framework for...
The corporate bond market activity has picked up in recent years both in the primary and secondary market segments. However, this market is yet to acquire depth, vibrancy and integration comparable...
Monetary policy is effected through changes in the repo rate, reverse repo rate and the cash reserve ratio. The response to changes in policy rates since 2001 in three different respects - the...
