x
Visit our new Mobile Website next time you access NetDania with your mobile device
Netdania News
Reserve bank of India cuts policy repo rate by 40 bps

Source FxWire Pro Friday, 22 May, 2020 16:25:28 GMT
Back

The Indian central bank, Reserve Bank of India, delivered another unscheduled rate cut. The RBI lowered its policy repo rate by 40 basis points to a historic low of 4 percent today. According to the central bank, the Indian economic growth is expected to shrink in 2020. The coming high frequency data and the extension of lockdowns in productive states are being a major drag on the economic growth.

Nevertheless, the timing of the rate cut was interesting. It is possible that the unscheduled rate cut was timed to maximize the effect of the government’s recent decision to assume the credit risk associated with certain types of lending, especially to small and medium enterprises, noted ANZ in a research report.

The government’s assumption of risk was a significant and positive feature of the government’s stimulus programs. It increases the propensity of banks to lend and encourages them to pass on any reductions in the policy rates, leading to better transmission. Owing to bank’s diminished propensity to lend, India’s financial system has been in a unique situation in recent months, experiencing soft credit growth in the midst of a strong liquidity surplus.

“To further fortify bank lending, the RBI has extended the moratorium on term loans, by additional three months. This is expected to help households with mortgages, in particular. We should however, bear in mind that the current growth environment and the fragile state of the financial sector even before the pandemic will inhibit a meaningful rebound in credit, even with these measures. We also await operational details of the government’s guarantee program. Issues like the duration of the guarantee, sectors to which it is available, and long-term restructuring obligations will be important considerations for banks to raise lending”, added ANZ.

Source: FxWire Pro - Commentary
© FxWire Pro 2020. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.
Find a Top Broker
Global
Forex
25504.74
3.89
0.02%
3057.48
16.54
0.54%
9580.78
118.24
1.25%
9650.00
-47.72
-0.49%
11675.41
3.04
0.03%
21795.71
40.33
0.19%
2852.35
6.13
0.22%
6105.48
-69.94
-1.13%
23094.69
-128.29
-0.55%
5718.82
-108.93
-1.87%
9580.30
90.2
0.95%
1728.60
6.8
0.39%
37.56
2.295
6.51%
1.10840
0.00061
0.06%
107.751
0.109
0.10%
1.23211
0.00029
0.02%
0.66539
0.00215
0.32%
1.37566
-0.00194
-0.14%
119.48500
0.241
0.20%
0.89712
-0.00216
-0.24%
132.62200
0.028
0.02%
0.96044
-0.00383
-0.40%
1.06626
-0.00195
-0.18%
0.61985
0.00017
0.03%
98.29500
-0.088
-0.09%
Top Gainers
Name
Last
+/-
%
24.00
24.00
23999900.00%
10.97
10.97
10969900.00%
9.70
9.70
9699900.00%
3.05
2.27
292.03%
11.07
6.21
127.78%
0.09
0.04
80.00%
9.70
4.29
79.30%
0.03
0.01
65.00%
8.85
3.43
63.28%
0.67
0.18
36.82%
Top Losers
Name
Last
+/-
%
3.71
-9.76
-72.46%
12.60
-6.61
-34.41%
2.68
-1.08
-28.72%
0.05
-0.02
-27.77%
33.27
-11.58
-25.82%
0.52
-0.18
-25.00%
0.66
-0.20
-23.26%
0.87
-0.23
-20.81%
0.25
-0.06
-18.90%
0.83
-0.17
-17.00%
NetDania does not guarantee the accuracy of data contained on this website, nor do we guarantee that data is real-time. Data on this website may be provided from OTC market sources and market makers, and not necessarily from exchanges. The provided price data is indicative and may not be appropriate for trading or decision making purposes. NetDania does not assume any responsibility for any losses incurred from the use of the provided data.
NetDania does not endorse or promote any broker or financial service. NetDania is a pure technology provider offering its software with broker integration. Any user of NetDania software must be an existing client of one of our supported brokers. NetDania showcases NetDania technology for the purpose of demonstrating it towards brokers and other institutions looking to white label the technology on a software subscription contract. No financial services are offered, promoted or recommended. NetDania is compensated as a technology provider by its institutional clients including its integrated brokers. It is the sole responsibility of any recipient employing or requesting an offering to comply with all applicable legislation or regulation affecting it.

Persons or entities including approved brokers not belonging to the NetDania Group may advertise on the NetDania and its Group’s websites, through links, banners or otherwise. We have not taken any steps to verify the accuracy, quality or reliability of any products, information or services provided by third parties that have links on our website. We accordingly provide no warranties with regard to and disclaim responsibility for any such products, information or services and exclude all liability in this regard to the fullest extent permitted by relevant laws and regulations. If a user of the NetDania Group’s websites decides to act upon any such advertising, such user does so entirely at its own risk.

NetDania’s website may be accessed worldwide. The Information provided on its website is however only intended for use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. None of the offerings services referred to on this website are available to recipients residing in countries where the provision of such offerings would constitute a violation of mandatory applicable legislation or regulations. It is the sole responsibility of any recipient employing or requesting an offering to comply with all applicable legislation or regulation.

HIGH RISK INVESTMENT WARNING:
End-users of the NetDania software that make use of the trading integration features as direct clients of integrated brokers, should be aware of the level of risk carried by trading in financial markets. Trading foreign exchange and or other financial instruments on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or more of your initial investment, and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading, and seek advice from your broker and or an independent financial advisor if you have any doubts. Anyone opening a live trading account needs to adhere to the laws of their local country as such laws may differ from country to country.
NetDania expressly disclaims any liability for any lost principal or profits which without limitation may arise directly or indirectly from the use of or reliance on information on our website or the use of our software with broker integration.
Copyright © 1998 -2020 NetDania Creations ApS, Bredgade 30, 1st floor, DK-1260 Copenhagen K, Denmark, +4536980409, Contact NetDania by email, CVR-nr.27976670 Terms And Conditions and Privacy Policy