[ad_1]
India’s central bank raised its key interest rate and moved to drain liquidity from the banking system in a surprise move Wednesday, sending bonds and stocks crashing, as it intensified the battle against inflation that’s outpaced its expectations this year.
In its first unscheduled rate change since the depths of the pandemic, the Reserve Bank of India increased its repurchase rate to 4.40%, from the record low 4% its been held at for the past two years to support the economy.
Persistent inflation pressures are becoming more acute, particularly on food, Governor Shaktikanta Das said in an online briefing, adding that there is a risk prices stay at this level for “too long” and expectations become unanchored.
Also read | Sensex tanks over 1,300 points, ends below 55,669 after RBI hikes interest rate
“Inflation must be tamed in order to keep the Indian economy resolute on its course to sustained and inclusive growth,” Das said, adding that input costs pressures were becoming “more potent” than before.
The central bank also increased the cash reserve ratio by 50 basis points to 4.5%, which will force lenders to park more money with the central bank and leave them with less to loan to consumers. Das said that would drain 870 billion rupees ($11.4 billion) of liquidity from the banking system.
“The RBI is telling us its all-hands-on-deck as far as inflation management is concerned,” said Rahul Bajoria, an economist with Barclays Plc in Mumbai.
Also read | Explained: What are repo rate, reverse repo and monetary policy
Yields on the benchmark 10-year bond jumped as much as 30 basis points to 7.42%, the highest since 2019, while the main stocks index fell to a near two-month low. The rupee was up 0.1%, the second best performer in Asia for the day, as the higher rates lent the currency some additional support.
RBI policymakers had recently begun signaling that higher rates were in the works, after drawing fire from some economists for being too slow to react as consumer prices breached the upper limit of the bank’s target through the first quarter of 2022.
The move also comes ahead of the Federal Reserve’s rate decision on Wednesday, which is expected to see the U.S. central bank’s most aggressive action to battle inflation in decades.
Increases in fuel and food prices, exacerbated by Russia’s invasion of Ukraine and sustained pandemic-related supply chain disruptions, have run hotter than the RBI had expected. Headline inflation in March rose to a 17-month high of 6.95%, riding above the RBI’s 2%-6% target range for a third month.
After reaffirming its accommodative stance in February — a step criticized by some economists as too benign on the risk of rising prices — the central bank said last month that it would begin prioritizing inflation over supporting growth.
“This is precisely in line with stance of withdrawal of accommodation” that was announced last month, Das said of Wednesday’s out-of-cycle decision. The bank’s next scheduled rate decision isn’t until June 8.
Das also warned that pressures on food inflation will continue, citing a tight global wheat market and rising edible oil prices, as well as rising retail fuel costs.
“This is a very well timed move,” said Aditi Nayar, chief economist ICRA Ltd., adding that by advancing the rate decision by approximately one month, the Monetary Policy Committee has focused on anchoring inflationary expectations in an increasingly uncertain environment.
In an interview late last month, Jayanth Rama Varma, one of the most hawkish members of the RBI’s rate-setting committee, signaled that the bank was ready to increase borrowing costs. “All the groundwork has been laid,” he said. “The liquidity normalization has happened, the forward guidance has been dropped, we are now completely free to act.”
Another member of the MPC, Shashanka Bhide, said in a separate interview that policymakers had been “a little surprised” by the rise in food prices.
The RBI in April raised its inflation forecast to 5.7% for the fiscal year that started April 1, up from its 4.5% in February, and said it sees gross domestic product growth during the year at 7.2%, compared with a previous expectation of 7.8%.
[ad_2]
Source link
purchase cialis online Marked orthostatic hypotension reported with concomitant use
cialis tablets for sale Zhao Ling is footsteps changed, and his fist was already on the butcher is face
I will be calling my doc in the AM but I m kinda freaking out lol how much viagra cost Some studies, including the European and Global Burden of Diseases GBD, aiming at measuring disability adjusted life years DALYs, estimated disability weights similar to preference weights for a wide array of diseases 15, 16
Must be pretty long if you still may ovulate brand name cialis online
Mammogram and breast exam frequency were protocol defined in the clinical trials and were performed at baseline and annually in the hormone trials and at baseline and biannually in the dietary modification trial natures viagra
cialis without prescription Strength Oral clonidine is cheaper and easier to use, with the ability to continue it outside the ICU
alternatives to allergy medication types of allergy pills allergy pills without antihistamine
order generic deltasone 5mg prednisone 40mg for sale
buy clearasil adult acne medication acticin order online best pimple treatment for teens
can flonase make you sleepy oral azelastine 10ml exact allergy pills
prescription heartburn medicine names order glycomet 500mg generic
amoxicillin 250mg us order generic amoxicillin amoxil for sale
online doctor for insomnia melatonin price
order zithromax 250mg generic cost azithromycin azithromycin online
purchase gabapentin for sale buy neurontin 600mg without prescription
generic prednisolone omnacortil 10mg usa buy prednisolone 40mg sale
amoxicillin pills amoxicillin pills cheap generic amoxil
augmentin over the counter augmentin pills
levothyroxine for sale online purchase levoxyl without prescription buy synthroid 100mcg sale
vardenafil 20mg canada levitra online buy
order clomid 50mg pill clomid 50mg generic clomiphene ca
semaglutide 14mg brand rybelsus 14 mg canada semaglutide 14mg usa
deltasone over the counter cheap deltasone 10mg order prednisone sale
rybelsus for sale online order rybelsus 14mg generic semaglutide 14 mg over the counter
order amoxil 250mg online cheap order amoxicillin 1000mg for sale buy amoxil generic
augmentin 375mg without prescription augmentin 625mg ca order augmentin 625mg online cheap
brand zithromax 250mg zithromax us buy zithromax 250mg for sale
synthroid online order synthroid usa levothyroxine pills
buy clomiphene 100mg generic buy clomiphene 50mg without prescription buy generic clomiphene 50mg
neurontin 800mg cheap buy gabapentin 800mg without prescription gabapentin brand
cheapest viagra purchase viagra online cheap viagra sildenafil 50mg
buy lasix medication cost furosemide 100mg buy lasix no prescription
semaglutide 14 mg ca rybelsus price semaglutide 14mg ca
vardenafil 10mg oral order vardenafil 20mg online cheap levitra 10mg pills
hydroxychloroquine buy online plaquenil 200mg cost order hydroxychloroquine 400mg pill
cenforce 100mg uk cenforce online buy cenforce where to buy
chloroquine online buy generic chloroquine cost chloroquine 250mg
buy glycomet 1000mg pills buy cheap generic glucophage glycomet 500mg generic
cheap norvasc 10mg buy norvasc online buy norvasc cheap
zovirax 400mg over the counter cheap allopurinol 100mg purchase allopurinol online
zestril 5mg ca order generic prinivil buy generic lisinopril online
buy prilosec prilosec without prescription buy generic prilosec over the counter
purchase metoprolol online cheap order metoprolol for sale order generic lopressor
oral atenolol 50mg order generic atenolol oral atenolol 50mg
medrol buy online medrol 4mg without prescription buy cheap methylprednisolone
college paper help pay for research papers pay essay writing
generic mobic buy meloxicam celecoxib for sale online
order generic reglan 20mg cost losartan 50mg buy hyzaar without prescription
buy flomax 0.2mg buy celebrex for sale purchase celebrex generic
nexium 40mg price topamax 100mg oral topiramate order
buy propecia 5mg generic buy proscar 1mg pills buy cheap fluconazole
cipro over the counter – buy ciprofloxacin 500mg order augmentin sale
cipro 1000mg sale – ciprofloxacin 1000mg brand purchase amoxiclav
Master the art of timing and precision as you navigate through treacherous obstacles and traps. Lucky Cola
buy metronidazole 200mg generic – generic metronidazole 200mg order generic azithromycin 250mg
ciplox online buy – chloromycetin over the counter erythromycin cost
purchase valacyclovir generic – acyclovir order acyclovir buy online
ivermectin 3 mg – ciprofloxacin 500 mg generic buy tetracycline 250mg sale
purchase metronidazole – order cleocin without prescription buy cheap azithromycin
buy lasix 40mg without prescription – warfarin 5mg pill order captopril online
buy glycomet cheap – order cefadroxil 500mg sale brand lincocin
zidovudine 300 mg tablet – buy roxithromycin generic zyloprim 100mg pill
buy clozaril 100mg online – buy accupril 10mg online cheap buy pepcid 20mg pill
buy seroquel 100mg pill – buy zoloft 100mg generic order eskalith pill
anafranil cheap – order imipramine 75mg generic buy doxepin pills
buy clavulanate – bactrim pill buy cipro generic
buy cheap amoxicillin – erythromycin 500mg price buy ciprofloxacin generic
ivermectin 12mg for humans for sale – buy aczone without prescription buy cefaclor 500mg for sale
albuterol 4mg pills – promethazine 25mg over the counter purchase theo-24 Cr
methylprednisolone 4mg oral – methylprednisolone generic name order azelastine 10 ml sprayers
glyburide 2.5mg price – buy glipizide 10mg without prescription dapagliflozin buy online
glucophage for sale – order losartan 25mg sale buy precose 25mg generic
buy repaglinide 1mg online – order empagliflozin 10mg pills buy jardiance online cheap
terbinafine where to buy – pill griseofulvin 250mg griseofulvin sale
order semaglutide 14 mg sale – glucovance without prescription desmopressin ca
ketoconazole usa – purchase mentax itraconazole 100 mg uk
buy famciclovir no prescription – buy famvir pills generic valcivir 1000mg
order generic lanoxin 250 mg – how to buy furosemide buy generic lasix diuretic
purchase hydrochlorothiazide generic – pill bisoprolol buy generic bisoprolol over the counter
metoprolol sale – order benicar pill adalat online order
nitroglycerin uk – clonidine medication valsartan 80mg without prescription
zocor counter – gemfibrozil horse atorvastatin exact
crestor attitude – crestor breathless caduet frantic