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Food inflation data was released today and the food inflation covers wholesale prices of lentils, rice, vegetables and other food articles has increased to 17.94 percent in the week to Jan. 30 from a year earlier , it was at 17.56 percent previous week.
Credit policy meeting outcome has come out and they have raised the CRR by 75 basis points , RBI has increased cash reserve ratio by 75 bps to 5.75 Percent , the hike would happen in two stages, the first stage of hike of 50 bps will be effective from February 13 and the next 25 bps from February 27. RBI has not touched the the reverse repo rate which is at 3.25 percent and repo rate which is at 4.75 percent.
DCB – Development Credit Bank which is a publicly listed private bank said that they are going to offer home loan rate below 8 percent , which is one of kind and think one of the lowest in the market but wait you knw how below 8 percent its just .05 percent down , anyway they are offering for 7.95 percent for the first year for loan amount upto 5 crore and after 1 year it will be back to floating interest rate that will be prevailing at that time.
state bank of india revises deposit rates down by 25 basis points from october 5th 2009 on all its term deposits, this is for all domestic deposit rates below 1 crore.
Reserve Bank of India informed today that Central Bank after the Policy review today have kept all the 3 Key interest rates unchanged .
Reserve Bank of India (RBI) which took several mesaure starting almost from october 2008 have lowered all the Key Inetrest rates.
>Repo rate, or its key short-term lending rate, was cut by 4.25 Percent to 4.75 Percent.
>Reverse-repo rate was cut by 2.75 Percent since early December 2008 >Cash reserve requirement (CRR) (the proportion of deposits that banks set aside), was cut by 4 percent to 5 Percent .
State Bank of India yeaterday announced that it will be cutting benchmark prime lending rate by 50 basis points to 11.75 per cent with effect from June 29.This is the second bank after Union bank of india , and im sure more banks will follow this .They did cut deposit rate by 25 basis point on june 15th 2009 .
Union Bank of India informed the market yesterday that they have announced a 25-basis-point reduction in PLR to 11.75 per cent, and that will be effective from July 1st 2009 , think Union Bank of india is the first to do it after a long time and this is infact the first bank to do it after the Finance Minister’s meeting with PSU bank chiefs on June 10 2009 .
Reserve Bank of India (RBI) informed yesterday that it has , cut its key short-term rates by 25 basis points each on Tuesday, 21 April 2009, to prop up growth amid global economic slowdown.
The repo rate, at which the RBI lends to the banks, was cut to 4.75%, and the reverse repo rate, at which the RBI absorbs excess cash from banks, was reduced to 3.25%.
RBI announced after the market closed yesterday that it will go ahead and cut repo rate, reverse repo rate by 50 basis points each with immediate effect.After the cut the Repo Rate stands at 5 percent and the reverse Repo Rate stand at 3.5 percent.The GDP figure which came out well below expectation had made them to reduce the rate.
SBI informed the market yesterday that it has reduced the home loan rate at 8 percent compared to what it is now , the catch is its only for the first 1 year from the date of approval after that it will change to normal rate whatever it is at that time .This scheme again is not all the time if you have the loan bought between February 2 and April 30, 2009 then you can avail this offer.
The Dow Jones industrial average (INDU) gained 200 points, or 2.5%. The Standard & Poor’s 500 (SPX) index added 28 points or 3.4% and the Nasdaq composite (COMP) added 53 points or 3.6%.This means for three straight session Dow Jones has gained points , we have to be care full.The gains all stayed intact when the Federal Reserve kept a key short-term interest rate at all-time lows and also promised that it was willing to do whatever it takes to have the credit flowing .I’m not sure how many times they will help the company and bank by bailout and other plans , Right and left the layoff is happening not sure how much these money will save everyone.
What moved the market
>Word surfaces that government-backed “bad bank” plan may be in making; financials come into focus
>Wells Fargo maintains dividend, has no plans to request additional TARP funds
>Yahoo! bests earnings expectations
Reserve Bank of india keeps all the key rates unchanged and also they reduced the overall GDP groth to 7 percent from 7.5 to 8 percent and have targeted the inflation percent at 3 percent by the end of march 2009.
In order to cope up with the Global recession all the country are doing this almost every month and India which was not really into recession is trying to take all the measure to kepp away from it , But its kind of deeper that expected , Out of the various cuts that Reserve bannk of india has did this is the latest
Repor Rate cut
To reduce the repo rate under the liquidity adjustment facility (LAF) by 100 basis points from 6.5 per cent to 5.5 per cent with immediate effect.
Reserve Repo Rate
To reduce the reverse repo rate under the LAF by 100 basis points from 5.0 per cent to 4.0 per cent with immediate effect.
Cash Reserve Ratio – CRR Rate
To reduce the cash reserve ratio (CRR) of scheduled banks by 50 basis points from 5.5 per cent to 5.0 per cent from the fortnight beginning January 17, 2009.
The CRR cut is not immdiate but atleast its happening this si the only gfactor that will put some money in banks hand which in turn can be used by banks for various purpose , So this cut will release 20,000 crore.We can expect more rate cuts in lending loansfrom various banks.
State bank of india announced over weekend that they have cut the BPLR by .75 percent , This means that the BPLR which governs the Home loan lending rate is also cut and now it stands at
Loan Rates
>9 per cent for loans up to Rs 30 lakh for a period of five years.
>For loans that are between period of 5 to 15 years the revised interest rate is 9.25 per cent.
>For Loan above 15 and below 25 years rate will be 9.5 per cent.
This will come into effect from January 1.
Fed which doesnt want to have the rate to be at 0 said today that it will cut the rate in the range of 0 to .25 percent which is the first time they have come to this range ever .This is like 10th time they are cutting the rate in 15 months.This federal funds rate is overnight lending rate which is used as a benchmark to set rates for a variety of loans, including adjustable rate mortgages, credit cards, home equity lines of credit and business loans. So after this move we can see lot of banks lowering the interest rate for the above said instruments.
So After RBI news on cut in Lending rate to banks i ment the Repo Rate , Banks came out with news on lending rate cut , Im not sure if ICIC bank has done any Cuts before this but now thay have announced that ICICI Bank has cut interest rates on new home loan below Rs 20 lakh by 1.5% to 11.5%.
Reserve Bank of India Cuts Repo Rate and Reverse Repo Rate , RBI cuts repo rate by 100 basis points to 6.5 percent and cuts reverse repo rate by 100 basis points to 5 percent and there is no change this time to CRR, SLR. The rate cut to Repo and Reverse Repo Rate will come into effect from December 8.
What is Repo Rate ?
Repo rate is the rate at which the banks can borrow money from a central bank of the country in order to avoid scarcity of funds.For eg, whenever the banks have any shortage of funds they can borrow it from Reserve Bank of India (RBI).
So RBI is sending signals to Banks to have the lending rate to public cut down .We will soon see a lot of banks announcing more lending rate cut .
Punjab National Bank which is the one normally cuts the rate when RBI cuts the crr or lending percentage has even done it again ,Think PNB would be the one who would be lending it for the lowest now.They have decided to reduce the BPLR by 100 bps from 13.50% p.a. to 12.50% with effect from December 01, 2008.They have also cut down the deposit interest rate from 10.50 percent p.a. to 9.50 percent p.a. for deposits of 1 year to less than 3 years.
Canara Bank has informed the market after it reduces the BPLR it has also reduces the Housing loans by 75 basis points sanctioned on or after November 10. For tenures of up to five years, the rate will now be 9.50 per cent for loans up to Rs. 30 lakh and 10.25 per cent for loans above Rs. 30 lakh. This floating rate.
| IDBI Bank Ltd informed the market that they have brought down the Benchmark Prime Lending Rate or (BPLR) by 75 basis points (bps) to 13.50% p.a. which is from November 08, 2008. |  |
So its kind of already in effect now .They said this 75 basis point or .75 percent cut is for Basic home loan and also educational loan.
State Bank of Mysore has informed the market that the Bank has revised the Bench-Mark Prime Lending Rate (BPLR) down by almost 75 basis points which will come into effect on November 10, 2008.They are not specific about reduction on home loan and auto loan but soon next week they might start some news on that.
PSU Bank after meeting with finance minister P.Chidambaram have agree to cut the Prime lending rate by 75 basis points.Not sure it will be straight 75 basis points cut but it will be in the range .So india inc can breath little bit easy ,Credit guarantee on loans will be extended to Rs one lakh crore and deposit rates will be cut by 50 basis points.This is in reply to RBI measure which cut the CRR and lendign rate to bank by massive 3.5 percent and 1 percent .Which has almost release more than 200000 crore liquidity.RBI is ready to take more measures to maintain the liquidity.One bad news is Deposit interest rate might come down .
RBI which dint take any measure to reduce the CRR like previous week during the RBI review had taken measure now after a week and had reduced the CRR by 100 basis points.The market crashed like anything when they did not reduce the crr previous week and now after infusing Rs 1,85,000 crore into the banking system it has done yet another infusion of 40000 crore and they have also reduced and a 0.5 per cent reduction in key short-term lending (repo) rate which will reduce the interest they will paying to RBI.
Reserve Bank on a sudden move reduced the Repo rate today by 100 basis points or 1 percent from 9 to 8 percsnt .This is like one of the measure that investors and banks was looking for because of the liquidity crunch .This cut has happen like on a suddent and one of the highest in 4 years i think.So This means that Banks can get money from RBI at a cheaper rate than before instead of paying 9 percent interest now they pay only 8 percent , Think this measure might bring down the lending rate for the consumers from bank , we will see.
Punjab National Bank is the first bank that started cutting lending rates after this CRR cut by Reserve bank they announced today that a interest rate cut on housing, educational and car loans with effect from tomorrow itself by .5 percent .
So in 10 days RBI has almost cut 2.5 percent thats really mind blowing not sure why they say every time there is no problem and cut the CRR rate like this , This will induce more money into the Money market but not sure if this is going to raise the inflation , we will worry about that later , On Wednesday RBI announced that it will cut the Cash Reserve Ratio (CRR) further by 100 basis points to 6.5 per cent of NDTL with effect from the current reporting fortnight that began on October 11, 2008. This will birng in 40000 crore to the Money market in the hands of Bank .
Reserve Bank which cut like .5 percent earlier this week saw that bank might need more money for circulation and decided to cut 1.5 percent which will induce 60000 crores.Reserve Bank of India (RBI) cut the cash Reserve Ratio (CRR) by 150 basis points instead of 50 basis point cut earlier in the week.
Inflation is at 11.98 percent compared to 11.89 percent , hmm thik its just playing games here going up and down i just .80 to .99 of 11 percent may be its 12.00 and they dont want to give that figure as it has not toucvhed that yet this year , but everyone expected it more than 12.
My previous post was about RBI rate hike in order curb inflation and now the news has come that RBI raised cash reserve ratio by 25 basis points and repo rate by 25 basis points at its monetary policy which was held today.So finally after the raise both cash reserve ratio and repo rate are both at 9 percent .
|
SENSEX |
13,808.80 |
-540.31 |
-3.77 |
|
MIDCAP |
5,495.34 |
-135.44 |
-2.41 |
|
SMLCAP |
6,834.09 |
-78.89 |
-1.14 |
|
BSE-500 |
5,350.83 |
-190.64 |
-3.44 |
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.
At the conclusion of the two-day meeting Tuesday, the central bank’s policy board said it would “encourage the uncollateralized overnight call rate to remain at around 0.50%,” according to a statement published on the BOJ’s Web-site.The statement also said the BOJ will leave its monthly purchases of government bonds at 1.2 trillion yen ($10.23 billion).
Source :CBS
