POST RBI POLICY REVIEW & IT’S IMPACT ON SHORT & LONG END OF THE YIELD CURVE
RBI Policy Review had sprung a major surprise by cutting CRR by 50 bp to 5.50% . This was done to infuse permanent liquidity to address the structural pressures on liquidity. In the initial phase, this will infuse liquidity to the tune of Rs.32,000 crs; and over longer period to the tune of almost Rs1.50 [...]
DEBT MARKET JOURNEY SINCE BUDGET IN FEBRUARY 2010
BLOG NOTE DATED: March 03’2010: POST BUDGET: We had recommended the following: To stay away from long end of the curve for following reasons Fiscal stimulus roll back Petrol price hike CRR hiked by 75 bps since February 13’2010 Reverse REPO figures started coming down from Rs.1 lac cr to Rs.30,000 crs & likely to [...]
POST THE RBI CREDIT POLICY REVIEW & ITS IMPACT
Credit policy is out the way Sentiments have gone negative & frequent utterances by RBI officials on giving priority to tackling inflation first and accordingly ensuring that liquidity does not come back into the system in a hurry has also not helped matters RBIs clear intention is to tackle inflation first & hence some more [...]