Page 5 - Interest Rate

Low availability of paper, rising interest rate dampen mood in bond market

RBI has issued just Rs 28,000 cr worth of 10-year bonds, cancelling a Rs 14,000 cr auction last Friday in a move being seen as intervention, which bond dealers say did not go well last time

MPC to maintain accommodative stance at least in the next two reviews

The disconcertingly sharp new wave of Covid-19 cases has reignited uncertainty regarding the economic outlook in the immediate term

Monetary policy: All eyes on RBI for orderly evolution of yields

Overall policy focus will remain on supporting growth through low and stable interest rates and abundant liquidity

Longer tenure bond funds top the returns charts in 2020, shows data

The Reserve Bank of India (RBI) continued its easy monetary policy in 2020 by cutting policy rates and infusing liquidity into the banking system

Moratorium: Forego interest on 8 categories of loans, SC tells govt

The Supreme Court Friday directed the government to ensure that all steps be taken to implement its decision to forego interest on eight specified categories of loans paid upto Rs two crore in view of the coronavirus pandemic. A bench headed by Justice Ashok Bhushan said the COVID-19 pandemic has not only caused serious threat to the health of the people but has also cast its shadow on the economic growth of the country as well as other countries in the entire world. The eight categories of loans are MSME (Micro, Small & Medium Enterprises), Education, Housing, Consumer durable, Credit card, Automobile, Personal and Consumption. "Due to lockdown imposed by the Government of India in exercise of powers under the Disaster Management Act, 2005, there can be no denial that most of the businesses including private sector as well as public sector has been adversely affected. "For several months, large number of industries were not allowed to function and exemptions were granted only to .

The dark side of low interest rates

While the low interest rate policy may or may not help with investment, output and employment, it can aggravate, if not cause, financial instability

Centre to frame scheme to waive moratorium interest; SC to hear case today

Waiver may cost Centre Rs 5,000-7,000 crore

Govt savings bonds to offer higher rate of interest than small savings

The bond will be available at State Bank of India and other nationalised banks, as well as four private sector banks, the RBI said in a statement

Interest rates to processing fee, RBI brings relief for loan app borrowers

The new rule book should bring down interest rates and improve recovery methods

Planning to take a home loan? Step-up is a good option in difficult times

Real estate prices are reasonable. Loan rates are also affordable - as low as 7.9 per cent for certain banks

Negative real interest rate no cause for concern, say economists

The RBI is expected to reduce its policy rate to 4.5% in this rate cycle, economists say

National Stock Exchange to introduce interest rate options from December 9

Interest rate options are financial derivative contract whose values are based on rupee interest rates.

Top-rated companies tap into low money market rates as liquidity improves

Most highly rated companies are enjoying rate benefit of more than 150 basis points in their working capital raised from the market

RBI has room to nudge interest rates lower: Harshad Patil, Tata AIA Life

He says any change in stance from neutral to accommodative from the MPC over the next few monetary policies will act as a catalyst to further improve market sentiments

High credit-deposit ratio restricts banks' ability to cut interest rates

SBI reduces rates by 5 basis points on home loans up to Rs 30 lakh

Firms set for rate change hiccups; stable corporate yields a positive

Yields on 10-year government bonds rose from 6.65% in April 2017 to around 7.50% now

Rising inflation may lead to interest rate hike in future, says PNB chief

RBI will unveil its bi-monthly policy amid widespread expectations that the central bank may go in for a status quo for the third time in a row

Smart moves in a falling interest rate regime

Shift to cheaper loans and look at dynamic funds