Bookmark Kaumudi Online  Bookmark this site  Editor@Kaumudi  |  Marketing  Print Advt rates  |  Calendar 2018        Go!    
 
 
May 25, Friday 2018 3:06 AM       

       HEADLINES: Fisherman dies after boat falls over his head                                              LDF campaign vehicle attacked in Chengannur                                              Netherlands PM to arrive in India today                                              Nipah Virus not an epidemic: Centre                                              Allahabad's name likely to be changed to Prayagraj                                              Star Book Media and Indywood Talent Hunt join hands to promote young talents                                              Rahul gives PM Modi fuel challenge                                              Four Nepali woman journalists scale Mount Everest                                              Trump-Kim meeting set to take place on June 12: Pompeo                                              Corruption cases result of high treason case instituted against Musharraf: Sharif                                              China urges Pak to relocate Hafiz Saeed to a West Asian country                                              Saddam Hussein's 30 million dollars yacht repurposed as a hotel                                              Ode to ABD: When 360 degree was not geometry but joy                                              AFI names 51-member team for Asian Junior Athletics                                              'Tired' AB De Villiers retires from international cricket                                              Injured Kohli ruled out of Surrey county stint                                              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
IRCTC ties up with ixigo for hotel bookings  
Bringing petrol, diesel under GST will lower prices: Fadnavis  
Russian Govt run atomic energy corporation 'ROSATOM'  
Sensex recoups 153 pts on global cues  
Rupee turbulence sharpens, plunges 38 paise to 68.42 a dollar  
Oil stocks under pressure; slip up to 8%  
Fuel price can be controlled by reducing VAT: Petrol dealers  
Fuel price hike: Centre to intervene, to hold talks with oil companies  
Sensex opens in green on value-buying, up 83 points  
Price of petrol touches Rs. 81 per litre in Thiruvananthapuram  
Sensex down 97 points, Nifty below 10,600  
Sensex up 126 points on Asian cues  
Date market sees decline in demand due to GST this Ramzan  
Fuel prices go up again  
India on path of development of tax collection, domestic capabilities  
Less oil production in OPEC affects fuel price: Pradhan  
Petrol, diesel touch all-time highs as oil companies hike rates  
PriceMap offers India's first product and price discovery platform for offline retail  
Birla Corporation, EBIDTA  
Despite challenging times, global business growth is on the rise, finds Epicor  
Despite challenging times, global business growth is on the rise: Epicor  
Sensex sinks 300 pts to close below 35k-mark  
Petrol, diesel prices skyrocket  
Horlicks creates a new Guinness World Record for making largest glass of milkshake  
April exports jump 5.17% to $25.91 bn, imports rise 4.6%  
 
Will GST help decrease the petrol price?
yes
 
no
 
don't know
 
 
 
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