Rahul AgarwalIn its latest Monetary Policy Committee (MPC) meeting on December 5, the Reserve Bank of India kept key rates unchanged at 5.15 per cent (lowest in nine years, after five straight cuts with a cumulative 135 bps reduction this calendar year, to boost the country’s sagging economy.RBI retained its 'accommodative' policy stance, which suggests that this is a pause rather than an end to the loosening cycle, and it still has room for a rate cut. Core inflation, which excludes energy and food items, slid beyond a seven-year low of 3.47 per cent, which clearly indicates that there is hardly any demand for non-food items in the market.Close Usually, a rate cut helps revive economic growth as it allows retail customers to avail cheaper loans and works like a big booster for the large industrial sector, who will be able to avail bulk loans at lower interest rates. related news Reliance forms a base, recommend delta appreciating based … [Read more...] about Are the RBI’s repo rate cuts enough to reinforce GDP growth?
Monetary policy of the federal reserve system
China's central bank raised its daily guidance rate for the yuan by the most in nearly 15 months on August 28, its latest move to put a floor under the currency as a trade war with the United States grinds on.But the near 0.7 percent jump in the official mid-point fixing sparked more corporate demand for cheaper dollars, capping the yuan's gains in the spot market.The People's Bank of China (PBOC) confirmed market suspicions on Friday by announcing it had started changing the way it calculates the mid-point earlier in August, a sign authorities are wary of letting the yuan weaken further after a record 10 straight weeks of losses.Close But market watchers say the yuan will come under ongoing depreciation pressure as the Sino-US trade battle deepens and China continues to ease policy to support its cooling economy. related news Hong Kong leader Lam heads for Beijing as pressure mounts at home Congressional panel ask Google, Apple if apps like TikTok disclose non-US ties US … [Read more...] about China raises yuan mid-point most in 15 months, spurs dollar buying
Indian equity benchmarks logged strong gains on December 13 buoyed by positive global sentiment as hopes of an orderly Brexit grew stronger after a landslide election victory for British Prime Minister Boris Johnson.The Sensex settled 428 points or 1.05 percent, higher at 41,009.71 while the Nifty closed the day with a gain of 115 points or 0.96 percent, at 12,086.70.Close Mid-caps and Small-caps, too, witnessed decent gains but underperformed the benchmark Sensex. BSE Mid-cap closed 0.92 percent up and the Small-cap index settled 0.82 percent up. For the week, both Sensex and Nifty climbed 1.4 percent. related news ITDC jumps 9% on merger with Kumarakruppa Frontier Nifty Bank marches toward record high on likely resolution of 4 NPA cases in December BGR Energy share price locked in 20% upper circuit on Rs 4,442-cr order win Among sectoral indices this week, the Nifty PSU Bank surged 4.5 percent, while the Nifty Metal and the Nifty Auto were up over 3 percent each. The Nifty … [Read more...] about Movers & Shakers: Top 10 stocks which gained or lost the most this week
The Indian economy has grown by leaps and bounds after attaining Independence in 1947. The history of trade and commerce in the Indian subcontinent can be divided into many phases — deindustrialization induced by colonization, socialist central planning in the aftermath of Independence and free market economics after the liberalization reforms of 1991.India’s share of the world economy slipped from around 25 percent in 1700 to 4.2 percent in 1950. A century under colonial rule had sapped the country’s entrepreneurial spirit. The country was forced to divert its raw materials to feed the mechanized factories that had sprung up in Britain during the industrial revolution. Poverty and famine was rampant.After the British left Indian shores, the newly elected government charted a course for the country that entailed capital controls and central planning, much along the lines of the Soviet Union. Even though the ruling dispensation at the time had pledged … [Read more...] about The India growth story: Here’s how some macro indicators have fared since 1947
China is exporting textiles to India through Bangladesh to get around a tax increase on imports, undermining New Delhi's efforts to support local manufacturers, industry sources said.Earlier this week, India doubled the import tax on more than 300 textile products to 20 percent, marking the second tax increase on textiles in as many months.This is aimed at providing relief to the country's domestic textile industry, which has been hit by cheaper imports. India's total textile imports jumped by 16 percent to a record $7 billion in the fiscal year to March 2018. Of this, about $3 billion were from China.Close Textiles are India's second largest job provider directly employing nearly 51 million people and accounting for 5 percent of India's gross domestic product, and 13 percent of its export earnings. related news PM Narendra Modi arrives in Kanpur to chair first meeting of National Ganga Council US-China trade deal cuts tariffs for Beijing promise of big farm purchases Hong … [Read more...] about Free-trade pacts hamper India’s efforts to curb China textile imports