When RBI declared the fifth bi-monthly monetary policy statement on December 2nd, Rajan chose not to change the key policy rates. The markets anticipating a rate cut were disappointed. However, the statement that “rates can...
The movement in currency – rupee is linked to the Balance of Payment Account .When there is current account appreciation, as more rupee flows come to India, and also capital account surplus. Then the excess...
The inflation index bonds which were introduced in the union budget last year have evoked a lack luster response. Inflation index bonds vary from traditional bonds in terms of returns. While traditional bonds offer a...
It is proven fact that financial inclusion & financial literacy is an effective way for “Poverty Alleviation”. The objective of financial inclusion is to meet the expectation of the unbanked and excluded, yet silent mass...
India’s growth has been hampered due to various reasons which has resulted in a forecast that GDP is likely to grow 4.86% for the financial FY14. Removing 26% interest rate cap on loans given by...
Mercantilist (Seventeenth Century) believed the more the gold and silver reserves; the better it was for the nation. The wealth of nations was measured by the greater accumulation of precious metals as per Mercantilists. However,...
The Reserve Bank of India (RBI) is issuing CPI linked Inflation Indexed National Saving Securities – Cumulative (IINSS-C) between 23rd December 2013 and 30th December 2013 for investment by retail investors. This instrument which will...
A central bank, reserve bank, or monetary authority is an institution that manages a state’s currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. The...
Inflation is one criterion which is closely monitored by Central Bank for its Monetary Policy and also by individuals to match their returns to be above the Inflation rate. In this Decoding Series, we decode the...
Federal Reserve announcement of a possible Qe Tapering of its massive bond buying program, implying unwinding of easy or cheap money availability in emerging economies created jitters in emerging markets’ financial markets world over. But, the...
What is your view on the collapse of the rupee? This collapse is the result of two components: a reversal of the U.S. monetary policy last May, and a significant weakening of the Indian economy....
The Indian Rupee has depreciated more than 20% over the last three months. Has this got more room to go? We try to answer this question by analysing FII portfolio flows into the country, mainly...
