Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2018        Go!    
 
 
February 25, Sunday 2018 11:11 PM       

       HEADLINES: CM, Chennithala condole Srideviā€™s death                                              Ten new faces in CPM state panel, seven exempted                                              Royal family protests at Padmatheertham pond                                              Congress activists manhandle minister in Kannur                                              Kodiyeri to continue, Gopi Kottamurikkal reinstated                                              Veteran actress Sridevi passes away at 55                                              Bollywood mourns demise of actress Sridevi                                              Sridevi, the diva who lit up Indian cinema screen                                              Somalia twin blasts: Death toll rises to 45                                              Russia hacked Winter Olympics: US                                              North willing to hold talks with US: S Korea                                              It is hard to digest that Sridevi is no more, says Sachin                                              BCCI turns down ICC request for rescheduling IPL match                                              Santner, Taylor shine as Kiwis defeat England                                              Kohli, Dhoni rested for upcoming T20I tri-series                                              T20I rankings: Kohli sinks, Dhawan rises                                              Kaumudi Facebook
       BUSINESS Next Article: India gets its first MSE sentiment index  
       RBI need not react to bond yields, MSP for interest rate review: ASSOCHAM
 
         Posted on :17:25:12 Feb 4, 2018
   
A A
       Last edited on:17:25:12 Feb 4, 2018
         Tags: RBI need not react to bond yields, MSP for in
 

NEW DELHI: The Reserve Bank of India (RBI) should not over-react to the high yield pressures of the bond market, along with the government promising a substantial revision in the Minimum Support Price (MSP) for farmers and refrain from going in for any hike in the benchmark policy lending rates when the Monetary Policy Committee meets on February 7, the ASSOCHAM said on Sunday.

"Yes, some of the macro indicators, including pegging of higher fiscal deficit of 3.3 percent for FY' 2019 and 3.5 percent of the Gross Domestic Product (GDP) for the current fiscal, look difficult, but reaction of the bond market to the budget-related would ease out soon," said the chamber in a Position Paper on the Financial Markets, post-Budget.

It said the concerns over the MSP leading to increase in retail inflation are exaggerated for various reasons.

"In the first place, effectively, there is no MSP for the vegetables at the ground level. As for the Operation Green for onion and potato, the entire institutional mechanism would have to be worked out by the NITI Aayog along with the states. So is the situation with regard to the MSP for several other agri commodities. While the NITI Aayog and the states would bear in mind the farmers' interest, the institutional mechanism would surely strike a balance between remuneration to the growers as also the impact on the retail prices. So, the immediate fear may be an over-reaction and the RBI should not get influenced while fixing the REPO (policy lending) rates in the coming week."

In so far as the stock market is concerned, it is a healthy correction which was overdue.

"A lot of froth and unnecessary exuberance had gathered around the stocks, particularly in the mid-cap space and there was no justification while matched against the corporate earnings. In fact, one of our earlier papers had cautioned about wild fluctuations in the market in 2018 in the backdrop of head winds like rising crude oil prices, revenue implications of the Goods and Services Tax (GST) roll out and other pressures on the fisc," said ASSOCHAM Secretary General D S Rawat.

The paper said, as is well recognised by the Union Budget, creation of jobs on a massive scale is the need of the hour.

“While the government has realised this fact, it is time the RBI joined the initiative by ensuring that the growth which seems visible, should be encouraged by at least not revising the interest rates upward, if at all the present macro situation does not favour any reduction."

A A
       BUSINESS
Next Article: India gets its first MSE sentiment index
 
 
BUSINESS HEADLINES
Start-ups revamping healthcare sector in India  
RBI sets April 30 deadline for banks to link CBS with SWIFT  
E-Way bill for inter-state goods from Apr 1: Sushil Modi  
Unethical business practices a significant problem: Jaitley  
Easier to do business in India than China: Trump Jr.  
RBI introduces Ombudsman Scheme for NBFCs  
Nest to offer 30 pct discount to Airbnb 'Superhosts'  
Sensex surges 200 pts, Nifty above 10,400-level  
Centre to crackdown on erring auditors  
Revised India-Kenya Double Taxation Avoidance Agreement notified  
Sensex slips 144 points ahead of F&O expiry  
EPFO cuts interest rate to 8.55 pct for 2017-18  
Aviva India launches digital platform to nurture child's inherent talent  
Milkbasket to hire 2,000 employees  
AI launches non-stop New Delhi-Amritsar-Birmingham flight  
Lakme Fashion Week, WeWork kickstart fashion Incubation program  
Finway Capital empowers borrowers with easy access to funds  
Rajesh Kakkar is offshore director of ONGC  
Glitches in GSTN remain cause of concern  
Post bank scams, Sensex tanks 462.10pts  
'Maharashtra has great business potential'  
Sensex drops 195 pts, Nifty below 10,400  
Reliance to invest 60,000 cr in Maharashtra  
Retailers accused of levying GST over MRP  
Citizens urge reduction of GST on sanitary napkins  
 
Do you think Facebook empathy will help tragedy victims?
yes
 
no
 
no opinion
 
 
 
Home Kerala India World Business Sports Sci&Tech Education Automobile CityNews Movies Environment Letters 
© Copyright keralakaumudi Online 2011  |  Reproduction in whole or in part without written permission is prohibited.
Head Office Address: Kaumudi Buildings, Pettah P.O, Trivandrum - 695024, India.
Online queries talk to Deepu Sasidharan, + 91 98472 38959 or Email deepu[at]kaumudi.com
Customer Service -Advertisement Disclaimer Statement   |  Copyright Policy