An increase in government borrowing runs the risk of flooding the debt market, while making it expensive for companies to borrow, according to outgoing Reserve Bank of india Deputy Governor Viral Acharya. In a lecture shared by the RBI late on Monday, Acharya said india's borrowing relative to its output has ranged from 67% to 85% since 2000 and has outpaced many emerging markets including china.
Acharya said "As more government debt floods markets, the relative safety and liquidity premium attached by investors to high-rated corporate bonds diminishes, raising the cost of borrowing especially for AAA-rated borrowers and making it relatively less sensitive to policy rate cuts”. Acharya is leaving the central bank on Tuesday, six months before the scheduled end of his term in office, citing personal reasons.
The Reserve Bank of india (RBI) cut the repo rate to 5.75% on June 6, its third cut in 2019, while also changing its policy stance to "accommodative," after data showed the economy growing at its slowest in over four years. india should cut back on subsidies and programs that are not delivering long-term growth and divest more of its public sector holdings. Acharya said
"The much-needed land, labour and agricultural reforms could be undertaken, all of which can help crowd-in private sector growth”.
Gold demand could improve in October due to Diwali festival and discounts could narrow Reportedly gold demand in top-consumer China was subdued this week as investors awaited outcome of crucial trade negotiations with the United States, while purchases in India during a key festival were lower than usual because of higher prices. India celebrated Dussehra festival on Tuesday, when buying gold is considered auspicious.
- Banks started using credit score of potential buyers to fix interest rate on loans
- Mukesh Ambani richest Indian Adani claimed second position
- India likely to limit palm oil import from Malaysia over J&K remark
- Oil companies to Air India: pay monthly or will cut fuel supply
- Niti CEO to decide on private rails, stations, not railway
- RSS and BJP lock horns over regional trade grouping
- Malvinder Singh former CEO of Ranbaxy arrested
- SBIs one year MCLR brought down from 8.15% pa to 8.05% pa
- Johnson & Johnson fined 8 billion dollars for not informing consumer of some drugs that grows Male breast
- Former PMC BANK MD kept in Police custody till October 17
- Ravi Prakash arrested now khaidi no. 4412
- US said it would slap 10% tariffs on European-made Airbus
- Accused gathered information online on committing murder
- Thomas Cook enables customers to get refunds within 60 days of receiving refund forms
- Petrol and Diesel recorded in Maharashtra's Parbhani at Rs 81.93/litre and diesel Rs 71.31/litre