RBI is likely to retain the core components of the FIT framework, sources said

Economists favor continuity because the framework produces predictable monetary policy outcomes | Photo credit: REUTERS The Reserve Bank of India (RBI) is likely to retain the core components of the flexible inflation targeting (FIT) framework as a majority of economists believe the model of targeting headline inflation at core inflation and maintaining a retail inflation […]

Record low inflation fuels the possibility of a repo rate, which could have a salutary effect on G-Sec yields

Prospects of 10-year G-Sec yields falling further to 6.30-6.35 percent exist if both rate deals and repo rate cuts materialize | Photo credit: Yields on government bonds (G-Secs) could ease in the coming weeks in the wake of record low retail inflation, opening the possibility of a cut in repo rates and the likelihood of […]

RBI has kept the possibility of future tariff reductions open: report

On October 1, RBI had kept its policy interest at 5.5% unchanged for the second consecutive time, stating concern about the rate of uncertainties. | Photocredit: Francis Mascarenhas The Reserve Bank of India (RBI) has kept the possibility of future tariff reductions open, whereby its Monetary Policy Committee (MPC) is revised its inflation forecasts downwards […]