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Reserve Bank of India (RBI) kept interest rates unchanged at its annual monetary policy review announced today afternoon. Rate sensitive business like banking,auto and realty stocks surged. Metal stocks rose.The CRR rate was raised by .25 percent to 8.25 percent.The market welcomed all these decision and applauded by raising more than 300 points.
RBI started taking action to reduce the inflation , They decided that there is too much liquidity in the indian money system and have asked the banks to give half percent more cast out of thr system to reserve bank in a two step process which will In the first stage, CRR will be increased to 7.75% from April 26, and in the second by 0.25% (25 basis points) with effect from May 10. So Bank has to get more revenue to meet the gap by tightening of money supply, forcing banks to raise lending and deposit rates.
Inflation for week ended April 5 are at 7.14% Vs 7.41%. Market estimates were at 7.3%. This is the first weekly decline in inflation after 8 weeks of rise.But already the RBI has taken mesaure to decrease it more down by increasing the CRR repo by 50 basis point.
Dow UP by 420 points what other reason you need for the global market to go up.This is the best in 5 and half years.
>FOMC cuts the fed funds and discount rates by 75 basis points;
>Fed funds rate now at 2.25% and the discount rate now at 2.50%
>Goldman Sachs tops earnings expectations; Lehman Brothers tops earnings estimates
>PPI inflation reading less then expected, however, core PPI is higher than expected
The Fed cut its federal funds rate, an overnight bank lending rate, to 2.25%.They where expecting 1 but 3/4 was still ok , this is almost sixth time they are doing.
On Sunday mayu be they wanted to save the world market so Fed decided to cut the rate on direct loans to commercial banks by a quarter-point , so its reduced to 3.25 from 3.50 percent .And also increased the term of discount-window loans to 90 days from 30 days.
Reserve Bank of India (RBI) announced today that they had left key rates - repo rate, reverse repo rate, bank Rate and cash reserve ratio unchanged. The market is too volatile after the announcement , and Banking stocks might trade weaker for some days from now , they all rose thinking they might cut the Rates.
The Federal Reserve sliced an important interest rate Wednesday—its second reduction in the last six weeks—to help the economy survive a deepening housing slump that is likely to crimp growth in coming months.
HOW MUCH Did they Cut :Fed agreed to lower the federal funds rate by one-quarter percentage point to 4.50 percent.
Response to the Rate cut : Commercial banks announced that they were cutting their prime lending rate—for certain credit cards, home equity lines of credit and other loans—to 7.50 percent.
Surprisingly robust U.S. third-quarter employment growth gives the Federal Reserve breathing space as it mulls whether more interest rate cuts are needed to help the world’s largest economy weather a housing slump and credit crisis.
Reserve Bank of India (RBI) left its key lending rate unchanged at 7.75 percent on Tuesday, as expected, but raised the proportion of cash banks have to keep with it on deposit in order to mop up inflation-fuelling funds.
The RBI said the cash reserve ratio (CRR) would rise to 7.0 percent from 6.50 percent with effect from Aug. 4, taking it to its highest level since November 2001.This would again see a raise in deposit rates and interest hike we will wait and watch.
The Federal Reserve has kept the benchmark rates unchanged at 5.25% and raised concerns on raising inflation.
MIC Electronics Limited Which opened on April 30th dint recieve good response from the retailers its almost in the 4th day of the issue its only .6 times subscribed will see how it closses on the closing day.
For MIC Electronics Limited IPO Allotment details come back here.
The market surged soon after news filtered in that the Reserve Bank of India (RBI) had kept all policy rates, the CRR, repo, reverse repo rate and bank rates unchanged in its monetary policy announced today.Banking stocks are the only one that rose , i dint expect this decision from Reserver Bank , with Inflation of prev week data shoing a very good increase i thought they would do some rate hikes which dint seems to happen , But again todays decision doesnt mean anything , on friday the Inflation data might come back and if we see a increase then may be on friday itself RBI might step in to do some damage control .
The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent.”Recent indicators have been mixed and the adjustment in the housing sector is ongoing. Nevertheless, the economy seems likely to continue to expand at a moderate pace over coming quarters.
“Recent readings on core inflation have been somewhat elevated. Although inflation pressures seem likely to moderate over time, the high level of resource utilization has the potential to sustain those pressures.
As we saw in the Previous Post about Bank of japan’s decision on the overnight call rate , FED will make thr decision today when the Fed’s policymakers wrap up a two-day meeting on March 21, think they would leave the federal funds rate, a key short-term rate that influences rates on consumer and corporate loans, at 5.25 percent untouched for the sixth consecutive meeting.but not sure if this will remain the same for the remaining year , we will see it after todays wrap up meeting.