Page 2 - Rate Cut
Q2 GDP, core sector data may push RBI to cut rates in December: economists
The GDP growth rate for Q2FY20 was in line with the market expectation at 4.5 per cent, says Deepthi Mary Mathew, economist, Geojit Financial Services
 "Q2 GDP, core sector data may push RBI to cut rates in December: economists")
RBI may cut rates by 25 bps to push growth despite high inflation: BofA-ML
Analysts at foreign brokerage Bank of America Merrill Lynch said the RBI will cut rates by 0.25 per cent in December, and follow it up with a 0.15 per cent in February
 "RBI may cut rates by 25 bps to push growth despite high inflation: BofA-ML")
New challenge to economy: Lenders not passing on rate cuts to customers
A decision to announce a fresh stimulus could be a tough one for the government, after its budget deficit topped 90% of its full-year goal
 "New challenge to economy: Lenders not passing on rate cuts to customers")
Experts call for multiple GST rate cuts in India citing Singapore example
Singapore has only one tax rate under GST- seven per cent -- on taxable goods and services while India has multiple slabs to charge the indirect tax
 "Experts call for multiple GST rate cuts in India citing Singapore example")
Corporate tax rate cuts: Mutual funds use rally to offload winners
On an overall basis, fund houses pumped in Rs 11,000 crore into stocks during the month with the benchmark Nifty ending with 3.6 per cent gain
 "Corporate tax rate cuts: Mutual funds use rally to offload winners")
An appropriate call
Significant fiscal slippage could affect monetary policy
 "An appropriate call")
Letter to BS: Highly naive to assume rate cuts will help arrest slowdown
Ironically, all that the RBI proposes, the government eventually disposes with some other obligations ranking high on its mind
How're corporation tax cuts going to be financed? Is this helicopter money?
Slashing the government's take from corporate profits to 25.2 per cent from 34.9 per cent has given a boost to stock-market sentiment
 "How're corporation tax cuts going to be financed? Is this helicopter money?")
Shaktikanta Das expects growth to pick up from Q2 on govt spending
In a major fiscal booster, the government slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies
 "Shaktikanta Das expects growth to pick up from Q2 on govt spending")
Rate cut, infusion of liquidity will end credit crisis: Edelweiss chairman
The premium that top-rated non-bank lenders pay over sovereign debt to borrow fell to the lowest in a year last week
 "Rate cut, infusion of liquidity will end credit crisis: Edelweiss chairman")
Rate cut alone can't arrest slump, boost rural demand: SBI report
Economists at State Bank Research also warned that any attempt to trim government spending to maintain the fiscal numbers will be severely detrimental to growth
 "Rate cut alone can't arrest slump, boost rural demand: SBI report")
Will Fed cut rates further? Suspense looms as investors expect more relief
A big clue could come from Chairman Jerome Powell when he speaks on Friday at the Kansas City Fed's annual policy retreat in Jackson Hole, Wyoming
 "Will Fed cut rates further? Suspense looms as investors expect more relief")
Deposit rate cuts at private banks likely to lag State Bank of India
Having cut rates, they may use this to strategically raise more term-liabilities
 "Deposit rate cuts at private banks likely to lag State Bank of India")
Better transmission, but more volatility for borrowers: Experts
From a borrower's perspective, shopping for a loan, currently, can be seriously confusing
 "Better transmission, but more volatility for borrowers: Experts")
The pros and cons of RBI rate cut
What is required is change of growth strategy, from foreign finance-led to exports & domestic growth
Economists see no rate cut by RBI in 2017
The US Federal Reserve's 25 basis points rate increase and its indication of two more rises in 2017 might have nixed the chance of the Reserve Bank of India (RBI) cutting its rate.Being an emerging market that needs foreign portfolio funds to bridge its current account deficit, India needs to maintain a certain interest rate differential, to attract dollar investors. A rate cut in India and a rate hike in the US would squeeze that difference and could lead to an outflow. And, India's inflation rate is unlikely to remain soft in the coming months, as was evident from the cautious tone of the Monetary Policy Committee members from the minutes of their meeting. So, it could be an extended pause for the Indian central bank, keeping the policy repo rate at 6.25 per cent, at least in this calendar year, and nudging banks to pass on earlier cuts. But, banks have largely ruled that out in the past. A rate cut at this point would not necessarily guarantee that banks would pare their own ...
 "Economists see no rate cut by RBI in 2017")
Treasury gain party over for banks
As rate easing cycle comes to halt, so does the high surge that banks witnessed in their income
 "Treasury gain party over for banks")
Rates unchanged: RBI, banks differ on lending rate cuts
RBI sees much room and other bankers do not, giving various reasons
 "Rates unchanged: RBI, banks differ on lending rate cuts")
25 bps repo rate cut more likely in April not February: Citigroup
The central bank will hold its next monetary policy meet on February 8
 "25 bps repo rate cut more likely in April not February: Citigroup")
Interest rate cut: Small relief for indebted firms
Interest rate cuts have not reduced cost of funds for corporates in the past
 "Interest rate cut: Small relief for indebted firms")
