Analysts point out that states typically receive large inflows from tax devolution and central transfers in lump sums, while spending on salaries, subsidies, and capital projects tends to be back-loaded. This mismatch leaves states with temporary surpluses that need a safe parking space.
Although worries about continued high inflation hurting economic growth persist, a slower pace of rate hikes will calm equity markets and stem the fall in asset prices in the short-term
Reserve Bank of India (RBI) has proposed that floating rate home loans will be benchmarked against an external benchmark from April 1, 2019.
It is inevitable that a company which is facing pressure would come under further pressure but that is subject to at some stage banks pass this on or slowdown saying there is no liquidity. So if the yields continue to remain high for more than few weeks, there will be more stress in the system
In a discussion on RBI's recent measures to stem the volatility in the rupee, a panel of experts were of the opinion that the structural and fundamental issues in the economy need to be addressed first. In the process, growth may also take a hit in the near-term.
The government today sought Parliament's nod for gross additional expenditure of Rs 4.3 lakh crore, including Rs 3.69 lakh crore for repayment of debt in the current financial year.