RBI opts for status quo, promises rate cut if inflation drops

Mumbai: Continuing to accept vigilance, the Reserve Bank on Tuesday kept notice rates unmoved but promised to ease them if there is sooner disinflation even as it made clear that the important ballot vote results could effect in inclusive policy events.

However, the central bank in its bi-monthly policy appraisal not closed about Rs 40,000 crore of banking funds by wounding the constitutional liquidity ratio (SLR), the part of deposits banks park in government bonds, by 0.5 percent to 22.5 percent.

Core sector output rises 4.2% in April

The output of eight core industries augmented 4.2 per cent in April, boosted by senior power, manure and cement manufacture.
The coal, basic oil, natural gas, processing plant products, fertilizers, steel, cement and power sectors had prolonged 3.7 per cent in the same month last year. expansion in these industries decelerated to 2.7 per cent in 2013-14.

Steps to address issue of rising bad loans likely in Budget

The Finance Ministry is probable to proclaim steps to contract with increasing bad loan circumstances in the financial plan to be obtainable sometime near the beginning next month.
"NPA is a matter of concern. We are discussing it. The government is likely to make announcements on NPA condition in the upcoming budget," a senior Finance Ministry bureaucrat said.

Sensex rises 467 points ahead of RBI policy review

The Sensex on Monday closed 467 points superior on burly FII inflows on hopefulness that the BJP government would bear out much needed reforms to boost financial enlargement.
The market will trail the first financial policy statement by RBI governor Raghuram Rajan on Tuesday since the BJP-led Narendra Modi government implicit accuse.

Why RBI should continue fighting inflation under new govt

A fortnight ago, two big developments took place. The new BJP-led government under Prime Minister Narendra Modi took accuse at the Centre and the GDP in the fourth district (Jan-March) of 2013/14 plunged to yet one more low of 4.6 per cent.

GDP enlargement now stands at 4.7 per cent for the whole economic year 2013/14, which is a tad above  the 4.5 per cent  achieved in 2012/13. Thus this is the second year in a line that the GDP expansion has been under five per cent, which actually calls for vital exploit on the attention rates' front to urge increase.