Saturday, November 20, 2010

RBI Credit Policy Market Bhavishya CNBC TV18 Live


The central bank said that with the improving growth outlook,  monetary and fiscal exit measures have started, but warned that an  ill-planned exit from monetary and fiscal stimulus would mar growth.


Manish Sonthalia, equity head at Motilal Oswal, said, "As far as hike in  CRR, reverse repo and repo rate is concerned, the market already has  well discounted on this front. We expect the hike to be around 50 basis  points across all rates. Goldman Sachs issue will have its negative  impact on the market this week."


“I think the primary driver for RBI’s  policy will remain what it can do with inflation rate and how quickly it  can bring it down, especially non food inflation and I think as long as  that keeps sticking up and that does not show signs of coming down  soon, I think that will be the driver for RBIs policy,” says JP Morgan  Chief Economist Jahangir Aziz.


The Reserve Bank of India will shortly issue Rs.50/- denomination  banknotes. Except for the change in the inset letter, the design of  these notes to be issued now is similar in all respects to the banknotes  in Mahatma Gandhi Series � 2005, with additional / new security  features issued on August 24, 2005.  All banknotes in the denomination  of Rs.50/- issued by the Bank in the past will continue to be legal  tender.


The hike in CRR, which will come into effect from April 24, will absorb Rs 12,500-crore excess cash from the banking system. Banks have  already indicated that they may not pass on the increased cost to the borrowers immediately as liquidity still remains sufficient in the system.


Index heavyweight Reliance was trading at  Rs 1,066.25 up 0.4% from its previous close of Rs 1,061.95. Hindustan  Lever was trading at Rs 225.00 up 0.11% from its previous close of Rs  224.75.

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