At the global WTO summit in June, nations had agreed on loosening the intellectual property rights regime only for vaccines and deciding on similar concessions for all other Covid-19 treatments, diagnostics or technologies six months later.
The Reserve Bank left its benchmark lending rate unchanged at 6.25%, on April 6, 2017, for the third policy review in a row, citing upside risk to inflation. It however increased the reverse repo R
CARE Ratings has come out with its report on RBI's Monetary Policy. The rating agency foresee a 50 basis points cut in the repo rate in FY16, the same is unlikely to be seen till June '15, says the report.
The RBI in its third Bi-Monthly Monetary Policy review on 5th Aug 2014 maintained its status quo by keeping the repo and reverse repo rate unchanged at 8% and 7% respectively.
Reserve Bank Governor Raghuram Rajan also said he would have liked to see a stronger reduction in core inflation, which stayed steady in the past few months.
Manish Wadhawan, MD & HD - Interest Rates, HSBC feels the RBI is trying to inject some kind of permanent liquidity into system because OMO is a manifestation of that. RBI has announced OMO for bond buyback.
Sajjid Z Chinoy, Asia Economics, JPMorgan says the main disinflationary force has been the cooling of vegetable prices. Retail vegetable prices have corrected by more than 30 percent and the first 10 days of January has already seen another 20 percent cooling.
The central bank will take steps to improve liquidity situation, especially in the government securities (G-Sec) market.
ICRA has come out with its comment on RBI's second quarter review of monetary policy 2013-14. The research firm believes that, the RBI could increase the Repo rate again by 25 bps during the second half but provide liquidity using other monetary tools at its disposal.
HSBC's Leif Eskesen believes the Reserve Bank of India may raise interest rates further to deal inflationary pressures. The apex bank on Tuesday raised the repo rate by 25 bps to 7.75 percent and reduced the MSF by 25 bps to 8.75 percent.
As mentioned in its macro-economic report on Monday, the RBI reiterated its warning that both wholesale and consumer inflation would remain high for the rest of this financial year, and hinted at further rate hikes if the situation so warranted.
Country's top lenders State Bank of India and ICICI Bank gained 1 percent and 2 percent, respectively. Axis Bank and Bank of Baroda rallied more than 2.5 percent. Bank Nifty climbed 146 points to 10919.
The RBI acted on expected lines by hiking the repo rate as inflation remained at elevated levels and lowering the MSF rate.
After rising around 100 points, the market has become volatile. The Sensex is up 12.85 points at 20583.13, and the Nifty is up 7.45 points at 6108.55. The Reserve Bank of India has cut repo rate by 25 basis points (bps) to 7.75 percent.
25 bps repo rate hike is unlikely to translate to base rate hikes, says Romesh Sobti, MD & CEO, IndusInd Bank. Though it would mean elevated rates of lending, elevated rates of borrowing for atleast the next two quarters.
Arindam Ghosh, MD & CEO, Blackridge Capital Advisors, believes RBI will go with the consensus and hike repo rate by 25 bps and lower MSF by an equivalent amount. As far as the mkt goes, he feels the move from 5,200 to 6,200 level is kind of huge and one needs to be cautious at these levels.
Additional liquidity may be infused through repo window which may take operational overnight rate towards the repo rate., says Sandeep Bagla, ICICI Securities.
Most market experts see the central bank announcing a 25 bps hike in repo rate in its next policy meet, October 29. Tushar Poddar, Asia Economics Research, Goldman Sachs also seconds this expectation, but adds that a possibility of 50 bps repo rate hike can‘t be ruled out either.
Reserve Bank of India is likely to cut interest rate by 0.25 per cent in its upcoming policy review as inflation is high, industry chamber Assocham said.
Worsening price situation may prompt the Reserve Bank to raise interest rate by 0.25 percent in its policy review on Tuesday, but it is also likely to announce some liquidity easing steps.
In September, the headline inflation accelerated to a seven-month high of 6.46 percent, while the retail inflation quickened to 9.84 percent.
If one further looks at the weightage, then defensives, the weightage of defensives has gone up and that of cyclicals have come down in the last five years.
India Ratings & Research (Ind-Ra) believes despite the favourable impact of monsoon, it is quite unlikely that overall inflation will decline sharply any time soon.
According to SS Mundra, the RBI's move to inject more liquidity into the system by cutting the MSF rates does not indicate a long-term change its policy plan given the high inflation and the repo rate hike.
In an interview to CNBC-TV18, Andre De Silva, Managing Director, Head of Asia-Pacific Rates, Global Research, HSBC spoke about marginal standing facility (MSF) rate cut.