Conversion of debt into equity promises relief to a stressed system. Banks must use flexibility with care.
Post-Budget meet: Amid signs of tension, Raghuram Rajan too backs PMDA, calls concept a worthwhile move
Investors in the US reacted favourably on Wednesday as the Federal Reserve moved a step closer to its first rate hike since 2006.
While the RBI governor did not rule out the possibility of near-term volatility in the markets, he said that in the medium term, markets will be back to normal.
Finance minister is right in wanting to create a modern bankruptcy law and procedures. It is a reform long overdue .
‘Examining any institutional constraints in passing on rate cuts.’
Out of 45 banks in the country, only three banks had cut lending rates in January when the RBI had, in a surprise move, slashed repo rate by 25 basis points.
There are three distinct features in the latest rate cut. One, this is the second “out of policy” cut, after the surprise cut in January.
Observing that democratic accountability is very strong in India, Rajan says ‘we may have a long way to go’.
He also warned that strong governments may not always move in the right direction.
Banks readily borrow from RBI at the policy rate but then lend that money out at a high rate…
How much we make will depend on the interest rate, how much is exported will depend on the exchange rate.
The RBI had front-loaded the rate cut on January 15, its first repo rate reduction in almost two years.
Most forecasts of repo rate cuts needed in India this year seem to be out of sync with the underlying trend of inflation and growth in India and the world.
Why smart capitalists should demand an inheritance tax.