Moneycontrol BureauThe Reserve Bank of India (RBI) left the repo rate unchanged in its December policy review while maintaining accommodative stance, as it expects past monetary easing and measures taken by the government to feed into the real economy gradually.All six members of Monetary Policy Committee (MPC) voted in favour of a pause, the central bank said in a statement on December 5.Close To catch all the action from the Monetary Policy Meet, click here related news RBI Credit Policy | To issue draft norms for cooperative banks to strengthen safety of deposits Households expect inflation to rise, businesses see weak demand: RBI survey RBI Credit Policy | Monetary Policy Committee raises consumer inflation target for October-March to 4.7-5.1% Following are the key takeaways from the monetary policy:On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (December 5, 2019) decided to:- … [Read more...] about RBI Monetary Policy: A quick read of the policy document
10 year bond yield
Aditi NayarContrary to expectations, the Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.15 percent in the December 2019 policy review, in a unanimous decision. The sharp upward revision in the CPI inflation projections outweighed the concerns related to economic growth.Moreover, the delayed and incomplete transmission of the cumulative repo rate cuts of 135 bps, particularly to bank lending rates and small savings schemes, as well as the measures to support growth that may be announced in the upcoming Union Budget, prompted the Committee to pause. Nevertheless, the MPC reiterated that the stance will remain accommodative as long as it’s necessary to revive growth, which suggests that a further rate cut should not be ruled out.Close The sharp rise in the retail inflation in October 2019, led by the temporary flare-up in vegetable prices, as well as an increase in prices of protein items and sugar which may prove to be more enduring, has been accompanied by a … [Read more...] about Monetary Policy | Inflation, transmission issues took rate cut off the table
Liquid mutual funds are mutual funds that invest in debt instruments and money market instruments. Liquid funds have a tenure of up to 90 days i.e. nearly three months. However, if you are an investor putting in your money in liquid funds, you need to know that you can only invest up to Rs 10 lakh.The NAV of the liquid fund is calculated for 365 days, whereas the NAV of other funds is calculated only on the basis of business days. Benefits of liquid Mutual FundsHere are the key advantages of liquid funds which make them an attractive option for the investors:Close Minimal lock-in period - Lock-in periods can range from 3 days to 3 months maximum. This means that you have access to instant liquidity in case of any emergency. You can sell the units without any hassle without any exit load. related news CIC issues show-cause notice to RBI for casual approach to its notice Japan government approves economic stimulus package to combat overseas risks Oil rises as OPEC … [Read more...] about Liquid Funds: What are Liquid Mutual Funds in India?