ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Money Market Review

Money Market Review
What is required in this period of faltering growth is a concerted effort to build confi dence so that the external sector gets strengthened. Besides dealing with infl ation control and fi scal...
This note analyses the banking sector's response to policy changes in terms of how far it has changed deposit and lending rates in recent times. Second, it studies the relationship between the median...
Key Developments in Financial Markets THE operations of the Indian financial markets have undergone some significant changes in the recent period which have implications for the long-term growth of...
Policy Perspectives and Developments STICKING to the new ground rules set out in the April monetary and credit policy document, the RBI governor's latest policy statement confines itself to a...
Uncertain Economic Backdrop UNCERTAINTIES in the real economy continue to bedevil the operations of the financial markets. All the three key factors responsible for the industrial slowdown in the...
The Backdrop THOUGH the financial markets seem to signal positive expectations, it is as yet difficult to discern them in any physical indicators of economic activity essentially for want of more...
For the third successive fiscal year, industrial growth remains low. On the other hand, the annual inflation rate has distinctly picked up. Against this backdrop of creeping stagflation, the fiscal...
The Reserve Bank is shedding its erstwhile monetarist blinkers and this has enhanced the credibility of its efforts to curb speculation and excessive volatility in the short-term money and foreign...
Budget and Money Market THERE arc several proposals in the central budget for 1998-99 which will have implications for the financial markets, the most significant amongst them being the proposed...
Monetary and Credit Policy THE latest monetary and credit policy announced by the RBI on April 29 in respect of the first half of 1998-99 seeks to make a significant, even if guarded, departure from...
in Investment The financial markets were marked by an abundance of liquidity throughout 1997-98, even though funds deployed by banks in non-food advances and commercial investments picked up in the...
Fiscal Impetus Missing The economy is facing a serious structural constraint Public sector investment, which crowds-in private sector output and investment, has suffered badly. Private sector...
Fire-Fighting on Policy Front Instead of operating on their long-term policy mandates, apex institutions such as the RBI SEBl and IDBI seem to concentrate on immediate, short-term issues. This...
Reversal of Premature Policies Developments in the domestic financial markets against the backdrop of the turmoil in the south-east Asian markets have punctured the claims of the authorities that...
EPW Research Foundation Fundamental Distortions Persist Recent RBI policy measures, suggesting a reversal of the liberalisation path, are a welcome attempt to curb speculation in the domestic...
EPW Research Foundation The money, foreign exchange and capital markets have witnessed skirmishes, reflecting the south-east Asian turmoil While the general impression that Indian markets are by and...
EPW Research Foundation Government's Debt Profile Getting Distorted Policy Distortions IN the first week of September, the Reserve Bank of India (RBI) released its Annual Report for 1996-97 which...
EPW Research Foundation Exchange Rate Tremors An important lesson to be learnt from the recent exchange rate developments is that the situation would have been much less amenable to control had the...
EPW Research Foundation While the benefits of the abundance of liquidity, which remains the dominant feature of the financial markets, have been marginal to the commercial sector, the government has...
EPW Research Foundation In Pursuit of Lower Interest Rates The RBl's announcement, on June 25, of a one percentage point cut in the Bank Rate came as a surprise to the market. The authorities are...
EPW Research Foundation Implications of CAC Proposals Even as the CRB fraud has exposed the inadequacies of the agencies concerned with monitoring, supervision and market intelligence the money...
EPW Research Foundation The announcement of the monetary and credit policy for the first half of 1997-98 has come against the background of a sharp deceleration of industrial growth and a severe...
EPW Research Foundation Moving towards Stagflation The growing signs of depressed economic activity are distinctly visible in the overhang of liquidity in the banking system and the persistent slump...
EPW Research Foundation foremost among the many policy changes introduced by the union budget for 1997-98 is the replacement of the system of ad hoc treasury bills by ways and means advances. Given...
EPW Research Foundation Industry's Growing Reliance on Bond Market A major fall-out of financial sector reforms has been to magnify the vicissitudes of the financial markets to which the productive...
EPW Research Foundation The complex phenomenon of expanding liquidity, high interest rates and low credit offtake is both the cause and the consequence of the slow-down of the economy, especially...
EPW Research Foundation High Cost of Financial Sector Reform The slow-down in industrial activity is now increasingly getting reflected in the portfolio behaviour of banks and financial institutions...
EPW Research Foundation Credit Policy Skirts Basic Issue With the latest monetary policy announcement confining itself to the essentials of the stabilisation and structural adjustment programme, the...
EPW Research Foundation Clueless against Emerging Recession The RBI's conventional approach, reiterated in its latest Annual Report, of tinkering with reserve requirements and signalling monetary...
EPWResearch Foundation Interest Rates Refuse to Behave Financial System in a Maze THE financial system is now caught in a Iabyrinthian maze. Though the Reserve Bank of India (RBI) has flogged the...
EPW Research Foundation High Cost of Funds Forces Industrial Slow-Down The heavy burden imposed by the high real rates of interest both on the government budget and on productive activity in the...
EPW Research Foundation Distortions Come to the Surface Macro Perspective CAUGHT in the shocks of adjustment to a situation of liberalisation, the financial system, contrary to official expectations...
EPW Research Foundation Easing of Liquidity: Is it Real? A close look at the factors responsible for the easing of the long spell of illiquidity in the money market brings out very clearly that they...
EPW Research Foundation Low Savings, High Demand for Funds Liquidity Strain: Experience THE financial year just concluded has faced certain unusual features in regard to the tight liquidity...
EPW Research Foundation Growing Inter-Linkages between Markets There was a sudden revival of FIIs' interest in the stock market and portfolio inflows rose, the rupee which had dipped to the lowest...
EPW Research Foundation While there are signs of the liquidity situation easing the result of continuous primary injection and its secondary impact the financial markets and the productive sectors...
EPW Research Foundation Coping with the Liquidity Crunch Illiquid Scenario THE situation of severe liquidity shortage is getting reflected in the market players resorting to variousdevices to cope...
EPW Research Foundation Linked Markets, Unlinked Policies The last two months' developments in the foreign exchange and money markets have thrown into sharp relief the close linkages developing...
EPW Research Foundation Developments in the foreign exchange market led money market movements in October, aggravating the liquidity strain in evidence since the beginning of the financial year.
EPW Research Foundation Gap in Busy Season Credit Policy The resource position of banks in the coming months is likely to be very tight a prospect which has been hardly addressed by the busy season...
EPW Research Foundation RBI to Government s Rescue The government's avowed objective of keeping the monetised deficit under check notwithstanding, the market's lukewarm response to its borrowing...
EPW Research Foundation Fiscal Deficit: Return to Original Sin Emerging Easiness in Liquidity THE severe liquidity strain, experienced by the money markets in India during the first quarter of the...
EPW Research Foundation A Dearth of Ideas While the acute shortage of liquidity combined with an unrealistic government borrowing programme has imparted a great deal of uncertainty, the money market...
EPW Research Foundation At the root of the current chaotic conditions in the financial system in general and the money market in particular are the unplanned borrowings by the government to finance...
EPW Research Foundation The policy of treating the money market as the fulcrum of central banking intervention has led to interest rates, which a few months ago had been set to decline so as to aid...
EPW Research Foundation Just when there was need for rates of interest on government debt and commercial sector borrowing to be moderated, there is taking place a stiffening of rates. Reflecting the...
EPW Research Foundation Pangs of Readjustment The rather painful readjustment of the money market, from a situation of externally-injected excess liquidity to one of liquidity shortage, has been...
EPW Research Foundation The monetary authorities anxiety about inflation has led to the current liquidity strain in the money market. (1) GROWING LIQUIDITY STRAIN JANUARY began with the legacy of an...
EPW Research Foundation RBI's About-Turn December 1994 ended with the central bank injecting Rs 2,000-2,500 crore into the market to quell the money market's riotous behaviour in an about-turn from...
EPW Research Foundation The Reserve Bank's narrow monetarist approach to using open market operations to mop up liquidity will aggravate the government's revenue deficit and raise interest costs for...
EPW Research Foundation Landmark for Bonds Market The Reserve Bank
EPW Research Foundation Travails of a Market in a Hurry A The Policy Perspective AN avowed objective of the Reserve Bank of India (RBI) almost since the second half of the 1980s has been to dilute...
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