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Friday
September 2019
10:08 PM IST
News Headlines
We have to hug each Kashmiri, create new paradise: Modi        Rajnath Singh becomes first Defence Minister to fly in Tejas fighter aircraft        Netanyahu''s rival Gantz says he should be PM in unity government        Tunisia''s ex-president Ben Ali dies in exile        Sindhu out of China Open, Praneeth enter quarterfinals        Former Dutch soccer player Maynard shot dead        Israel election: Netanyahu trails by a seat with majority votes counted        MODI Pak refuses India''s request to open airspace for PM Modi citing ''situation in Kashmir''        HINDI Never asked for imposing Hindi over native languages, says Shah; Stalin postpones protest        Rupee stems losses, rallies 54 paise to 71.24 vs USD on easing oil prices        Kohli hits unbeaten 72 as India outplay SA to begin home season with a bang        Vinesh locks Olympic quota with bronze at Worlds, Pooja in line for second medal        China Open: Sindhu, Praneeth, Kashyap enter second round, Saina crashes out        Azad, Ahmed Patel meet Chidambaram in Tihar jail        DRDO, Air Force successfully test-fire ''Astra'' missile        NGOs receiving substantial financing from govt come under RTI Act, says SC        All party meet decides to explore legal options to help flat owners        Taliban kill at least 48 in bloody day ahead of Afghan polls        Pompeo heading Tuesday to Saudi Arabia over Iran tensions: Pence        Oil sinks 5% on forecasts of quick Saudi output recovery        
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International News
Pro-growth RBI minutes to cap yields; revives expectations for further policy easing
 
Singapore: Minutes from the Reserve Bank of India's August meeting has revived expectations for further policy easing as headline inflation is likely to remain within target over the next one year, says a DBS report.

According to the report, pro-growth Reserve Bank of India (RBI) minutes are expected to cap bond yields.

"INR 10Y (generic) government bond yields are likely to stay below 6.7 per cent after RBI minutes revived expectations for further policy easing," Radhika Rao, Economist, and Eugene Leow, Rates Strategist at DBS Group Research said in the report.

Weakening growth was a dominant worry for policy makers amid weaker global activity, they noted.

"With RBI projecting inflation at below target over the next four quarters, the door for cuts remains open. We suspect further downward growth revisions might trigger further rate response," the DBS report said.

The report however cautioned that "the debate over remaining policy space is beginning to surface" after 110 bps cuts already undertaken and another likely in the fourth quarter (4Q).

In an unusual move, the Reserve Bank of India (RBI) on August 7 had reduced the benchmark lending rate by 35 basis points to 5.40 per cent amid concerns over slowdown in economy. Before this, the RBI had reduced the rate thrice, each time by 25 basis points.

"Transmission will be accorded the highest priority, as the RBI's moral suasion attempts, surplus liquidity and consideration of an external benchmarks nudged banks to act," the DBS report noted.

While the RBI has lowered the repo rate by 1.1 percentage points in 2019, the banks are yet to pass on the entire benefit of lower interest rate to borrowers.

RBI Governor Shaktikanta Das recently asked all banks to link their interest rate with repo for faster transmission of the central bank's policy actions.


Netanyahu''s rival Gantz says he should be PM in unity government
Tunisia''s ex-president Ben Ali dies in exile
Israel election: Netanyahu trails by a seat with majority votes counted
MODI Pak refuses India''s request to open airspace for PM Modi citing ''situation in Kashmir''
Taliban kill at least 48 in bloody day ahead of Afghan polls
Pompeo heading Tuesday to Saudi Arabia over Iran tensions: Pence
Trump to join Modi in Houston to address 50K Indian-Americans, says White House
Car bomb kills 11 civilians in northern Syria: monitor
Hong Kong returns to violence with tear gas and Molotovs
36 people missing after boat sinks in Congo river: DRC police
Underfire PM calls up Hulk, claims 'huge' Brexit progress
Former PM Cameron 'sorry' for Brexit divisions
Pakistani cleric Tahirul Qadri quits politics, resigns from party
Afghan government says elections first, peace deal after
Pak PM Khan may talk to President Trump twice during US visit
New Zealand tightens gun laws again after mosque massacre
India''s action in Kashmir threat to peace in region: Pak Prez By Sajjad Hussain
Stowaway passengers killed in DR Congo train derailment
Google agrees to pay 965 mln euros to settle fiscal disputes with France
US extracted spy that confirmed Putin role in 2016 US vote: reports
ENTERTAINMENT NEWS
'Game of Thrones' prequel series about Targaryen clan in works at HBO
 Los Angeles: HBO is moving ahead with yet another prequel show to its smash-hit series "Game of Thro  
It was intimidating directing Farhan, says Shonali Bose
Biopic on Steve McQueen in the works at Wonderfilm Media
'Face/Off' reboot in the works
KERALA NEWS
Government to rebuild Palarivattom flyover
 Thiruvananthapuram: The state government has decided to demolish and rebuild Palarivattom flyover as
CM demands PSC questions in Malayalam
Tipplers guzzle Rs 487 crore worth liqour during onam
candidate selection for Pala by-election is an internal matter of KC(M): Chandy
NATIONAL NEWS
We have to hug each Kashmiri, create new paradise: Modi
 Nashik: Blaming the Congress for the plight of Kashmiris for decades, Prime Minister Narendra Modi o
Azad, Ahmed Patel meet Chidambaram in Tihar jail
DRDO, Air Force successfully test-fire ''Astra'' missile
NGOs receiving substantial financing from govt come under RTI Act, says SC
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