Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: cpt :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT RATES :: empanelment :: VAT Audit :: due date for vat payment :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« General »
 Why consumers should welcome GST
 Retailers need to file single GST return every month
 Aadhaar is must for income tax returns if you have one; Here's how you can file it online
 Will it be a tax haven above the law?
 Your mutual fund investment tax efficient? Here are 3 steps to ensure utmost efficiency for your portfolio
 Finally a goods and services tax. But what lies ahead?
 Tax May Rise On Outbound M&As, Indian Mncs’ Investments
 Filing income tax return? Do remember to claim benefits on your reimbursements
 Banks will have a hard slog ahead to get GST-ready
 Clarification regarding applicability of Section 16 (1)(a) of the Companies Act. 2013 with reference to cases under corresponding provisions of Companies Act. 1956
 Introduce indemnity clauses with suppliers on tax compliance: Expert

Poll - RBI to raise rates by 25 bps by end FY11
December, 16th 2010

The Reserve Bank of India (RBI) is expected to stay pat on rates at its review on Thursday, with analysts anticipating the current tight liquidity conditions in the banking system to ease by end-March, a Reuters poll showed.

Most of 23 economists surveyed expect the RBI to keep rates on hold on Dec. 16, while only one expects a 25 basis point increase in both rates in an attempt to further stamp down inflationary expectations.

The RBI's key lending rate, or the repo rate , currently at 6.25 percent, is seen at 6.5 percent by end of March 2011. The reverse repo rate , or borrowing rate, which stands at 5.25 percent, is seen at 5.5 percent by March.

The forecasts are unchanged from the previous poll conducted after the Nov. 2 policy.

"We are looking for an extended pause in the tightening cycle as liquidity tightness will not ease significantly, so as such effective monetary tightening is already underway. Thus, RBI may not be compelled to raise rates despite inflation concerns remaining," said Shubhada Rao , chief economist at Yes Bank .

Liquidity in the banking system has been unusually tight since November, with banks borrowing an average of around 1 trillion rupees ($22.2 billion) from the central bank each day.

"To contain inflation expectations, RBI needs to tighten market rates, which are already on tighter trajectory due to liquidity. So adding further pressure by increasing policy rates may be exacerbating," Yes Bank's Rao added.

The headline inflation eased in line with expectations to its lowest level in a year in November. It rose just 7.48 percent in November compared with 8.58 percent in October, data released on Tuesday showed.

India's economy, Asia's third-largest, is expected to expand by at least 8.5 percent in 2010/11, the fastest pace among major Asian economies after China.

Fourteen of 22 economists expect at least another 25 basis points increase in the repo rate by end-March.

A majority of the economists said the central bank's tightening was appropriate, while one said it should be more aggressive and another said it should be less aggressive.

The RBI, which has raised its key lending rate by 150 basis points in six moves since mid-March, is expected to pause the tightening cycle at least until February.

Most analysts did not see any change in the cash reserve ratio , or the proportion of deposits that banks' need to set aside as cash with the central bank, either in December or later this fiscal year.

After the December meet, the central bank will review policy two more times this fiscal year.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions