National · 29 updates
Of the 41 economists surveyed by Bloomberg, 35 expect the six-member Monetary Policy Committee to raise the benchmark repurchase rate by a quarter point to 5.50 per cent, with the remainder predicting no change.
RBI raises repo rate by 25 points, first hike in nearly four years
Mumbai: The central bank's sell-buy swaps, wherein it sells dollars in the spot market with a promise to buy back the units on a future date, have played a part in slowing the rupee's rout but simultaneously caused forward premiums to spike.Bankers believe this has had an unintended consequence for the currency: Making it expensive for overseas funds to buy rupee-denominated assets due to high hedging costs.In effect, this could be seen as partially counter-productive as a tool that's intended to give the rupee a firm floor.Also read: RBI survey: Household inflation expectations hit 10% for ne
The RBI policy review will need Central assistance to effectively fight inflation
The Reserve Bank of India (RBI) has tightened rules for foreign exchange derivative transactions involving the Indian rupee. The changes restrict the rebooking of cancelled contracts, lower the limit for transactions without underlying exposure and introduce additional checks for hedging activities.Under the new measures, authorised dealers will not be permitted to allow users to rebook any foreign exchange derivative contract involving the rupee, whether deliverable or non-deliverable, if it was cancelled with any authorised dealer after the issuance of the Directions. Rollovers of derivative
The Reserve Bank of India (RBI) on Friday said it will conduct an open market operation (OMO) sale auction of government securities worth Rs 25,000 crore on October 13.The central bank has offered six government securities for the auction, with maturities ranging from March 2030 to April 2034. These include 7.88 per cent government security (GS) 2030, 6.10 per cent GS 2031, 7.95 per cent GS 2032, 7.26 per cent GS 2033, 7.18 per cent GS 2033, and 7.10 per cent GS 2034, according to a notification.The RBI has not specified individual sale amounts for the six securities and retains the discretion
The Reserve Bank of India is broadening its defenses to steady the rupee, taking some of its strongest measures since the 2013 taper tantrum. That may give the currency a boost as trading resumes Monday, but the question remains: how far is the central bank willing to go as external pressures mount?The RBI took the steps early Saturday as the rupee again neared a record low. They include opening a dollar window for state-owned oil refiners and introducing a reserve requirement for foreign-exchange derivatives, similar to one used by China’s central bank. The moves come just after the RBI raise
Reserve Bank of India has introduced new measures aimed at stabilizing the Indian rupee against the dollar. These changes include tighter restrictions on foreign exchange derivatives and new reserve requirements for banks. Analysts expect these measures to ease rupee depreciation and lower speculative dollar demand temporarily. However, external factors like high crude oil prices may continue influencing the currency's stability.
The RBI has taken several steps to bolster its foreign-exchange resources.
Rupee emerged as one of Asia's strongest-performing currencies, even as most regional currencies moved within a narrow range. Despite Monday's sharp rise, the rupee has lost 6.6% against the dollar so far this year. On Saturday, the RBI announced a set of measures targeting two major sources of pressure on the rupee.
RBI Governor Sanjay Malhotra signals extended curbs to save rupee.
Indian authorities can consider bigger rate hikes, hiking MSF rate, LTCG tax, and raising fuel prices.
"These revisions to the methodology are entirely consistent with what the advice we've been giving them, including from our statistics department," said Krishna Srinivasan, Director of the IMF's Asia and Pacific Department