He expects the apex bank to hike repo rates going forward. Obviously, one will wait and see inflation numbers and take a call, Parthasarthy adds.
Also read: RBI eases liquidity, cuts MSF rate by 50 bps to 9%
Below is the edited transcript of his interview to CNBC-TV18.
Q: By how much will the short term rates fall tomorrow?
A: The immediate overnight rates will fall by 50 bps and you could see a reasonably good reaction in all the short-term rates; in CDs and CPs of a similar magnitude.
Q: When you say short-term, would you think only three-six month fall or can you see the rate falling all the way up to one year?
A: You will have some reaction in all the tenures without doubt and not just one year. We would also have reactions on G-Secs across the curve. At the longer end, it will be lower than 50 bps, at the shorter end you would see a reduction of around 50 bps.
Q: What is the next move of the RBI? Would you say that a repo hike is still very much there in the next policy or would you wait to watch the inflation numbers on Friday and Monday?
A: I would broadly agree with that. Prior to rupee depreciation, the inflation trajectory what was being expected, and now there has been a significant difference that it is going to be much higher. Just to correct for that, there could be a possibility of a repo rate hike. One will have to obviously wait and see the numbers and then take a call.
Q: Would you agree that the cap might go? You have raised the liquidity issue prominently.
A: As I reiterate the fact that they have come out with 7 and 14 day repos and with some cap there, I will not be totally surprised if the full cap does not go from overnight Liquidity Adjustment Facility (LAF).
Q: You will be surprised if it didn't go?
A: Didn't go fully. It would be increased from the 0.5 percent of NDTL.
Q: But would it remain?
A: There would be some cap. That is possibly the intention. Otherwise just getting 7 and 14 day repo and placed with a full availability of LAF on overnight then that 7 and 14 may become infructuous going down the line.
Anda sedang membaca artikel tentang
RBI move to lower short-term rates; see repo hike: HDFC Bk
Dengan url
http://berhentialkohol.blogspot.com/2013/10/rbi-move-to-lower-short-term-rates-see.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
RBI move to lower short-term rates; see repo hike: HDFC Bk
namun jangan lupa untuk meletakkan link
RBI move to lower short-term rates; see repo hike: HDFC Bk
sebagai sumbernya
0 komentar:
Posting Komentar