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Tag Archive: Raghuram Rajan


Good morning so the RBI New rates effective 29.10.2013 are :BTXtODVCQAALUaw

*Bank Rate:8.75%
*Repo Rate:7.75%
*Reverse Repo Rate:6.75%
*MSF Rate:8.75%
*Cash Reserve Ratio:4%
*SLR:23%

Well those are the rates where the governor Raghuram Rajan in his first “real” policy, increased the repo rate by 0.25% to 7.75% and cut the MSF rate by 0.25% to 8.75%. Reverse repo goes to 6.75%.

Well the above would be more clear providing you Continue reading

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It was less than four weeks ago that the Reserve Bank of India, under new head Raghuram Rajan, stunned the world on September 20 when it 813530announced that it would both hike its repo and cash reserve rates in an inflation fighting step, while lowering its marginal standing facility rate by 75 bps to 9.5% in order to boost banking sector liquidity, hence “bipolar policy” of the kind most recently seen in Europe. Moments ago, the RBI once again showed that when faced with the option of consumer pain, i.e. runaway inflation, and preserving a banking status quo, i.e. liquidity, the central bank will always choose the latter, when in a surprising move the RBI cut its Marginal Standing Facility rate by further 50 basis points, from 9.5% to 9.0%.  Continue reading

Yesterday RBI said:813530
reduce the marginal standing facility (MSF) rate by 75 basis points from 10.25 per cent to 9.5 per cent with immediate effect;
– reduce the minimum daily maintenance of the cash reserve ratio (CRR) from 99 per cent of the requirement to 95 per cent effective from the fortnight beginning September 21, 2013, while keeping the CRR unchanged at 4.0 per cent; and
– increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.25 per cent to 7.5 per cent with immediate effect.

You did not understand that? Neither did I.  Continue reading

#The Twitter IPO

Today Raghuram Rajan to spell out his maiden monetary policy review. Now wait for the oohs and aahs. But I would be more interested on the 813530discussion After the announcement of the Mid-Quarter Review of Monetary Policy Statement 2013-14, Dr. Raghuram Rajan, Governor and Deputy Governors of the Reserve Bank of India will interact with researchers/analysts through teleconference between 3.30 p.m. and 4.30 pm on Friday, September 20, 2013.

Moving towards the topic on the IPO of twitter the only official information twitter account tweeted that :
“We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.”  Continue reading

Across the world we have seen the unification of trading in all kinds of products — spot or derivatives, equities or currencies or fixed income or 813530commodities etc., OTC or exchange. It makes too much sense to reap economies of scale and economies of scope, both in the private sector and in the work of regulation and supervision. The arrangement in India, where the Forward Contracts Regulation Act (1952) envisages the Forward Markets Commission that is a part of the Department of Consumer Affairs, is a silly one.

Everything we have learned about how to run the equity market is valuable for commodity futures:

  • The regulatory governance process at SEBI including authority to issue regulations, enforcement process, appeals at SAT, etc.
  • Governance problems of Infrastructure Institutions with three-way separation between shareholders, managers and trading members.
  • Netting by novation at the clearing corporation.
  • Not having `badla’ trading.   Continue reading
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