The Japanese financial services major Nomura has analysed the impact of the twin drone attacks which targeted Abqaiq, the site of the largest oil processing plant run by the Saudi state oil company, Aramco, and the Khurais oilfield. The attacks wiped out more than half of Saudi Arabia’s crude supply. The attack has surged the ..
Topic: Inflation [32 items]
The Reserve Bank of India (RBI) in its monetary policy review undertaken by the Monetary Policy Committee (MPC) has made the following decisions: RBI cuts repo rate to 5.4% from the current 5.75%. Reverse repo rate under liquidity adjustment facility stands revised to 5.15%. Marginal standing facility (MSF) rate and the bank rate reduced to 6%. ..
The United States Federal Reserve has announced a quarter-percentage-point cut in interest rates. This was the first-rate cut in 11 years- the first since the global financial crisis broke in 2008. The rate cut marked a departure from the hawkish rate-hike trajectory of US Federal Reserve moving in the direction of bolstering the debt-laden American economy. ..
In the budget, the government has proposed to raise a part of its gross borrowing in external markets in external currencies by issuing sovereign bonds. Under the programme, both the initial loan amount and the final payment will be in either US dollars or some other comparable currency. What are Sovereign Bonds? The issuer of ..
The Monetary Policy Committee (MPC) is the body of the RBI headed by its Governor. The body is responsible for taking the important monetary policy decisions for determining the repo rate. The Monetary policy committee is a statutory body established under the provisions of RBI act 1934. The functions of the committee are: The main ..
Contractionary Policy refers to the monetary policy which aims to slow down the economy by introducing a reduction in money supply for lesser money and investment. There are many economic tools used by the Central Bank of every nation like CRR, SLR, Repo, Reverse Repo, Interest Rate etc. to keep a check on the volume ..
Cash Reserve Ratio is a specific amount of funds which the commercial banks have to keep with the Reserve Bank of India to ensure liquidity in the system. The funds are a part of the Net Demand and Time Liabilities (NDTL). A reduction in CRR leads to more liquidity in the system as the banks ..
Bank Rate is defined as the rate at which Central Bank gives loans to other domestic banks like commercial banks, cooperative banks, development banks etc. The loans are generally given on a short-term basis. It is the way the Central Bank manages the economic activity in the country. The Bank Rate, in turn, goes to ..