MUMBAI (Reuters) - The Reserve Bank of India’s change in monetary policy stance effectively equates to an additional 25-basis-point (bps) rate cut, Governor Shaktikanta Das was reported as saying. FILE PHOTO: The Reserve Bank of India (RBI) Governor Shaktikanta Das listens to a question during a news conference in Mumbai, India, June 6, 2019. REUTERS/Francis Mascarenhas/File Photo The comments fueled speculation over whether the central bank is nearing an end to its current rate-cutting cycle, after three moves so far this year. Das also said future policy decisions will depend on incoming data, particularly inflation, in separate interviews with the Times of India and Bloomberg published on Monday. “We have reduced policy rates by 75 bps and we have shifted to accommodative. And shifting of the stance to accommodative itself means a rate cut of 25 bps at least,” Das was quoted as saying in both the reports. A senior trader with a primary dealership … [Read more...] about Reserve Bank of India’s Das says change in stance as good as…
10 year bond yield india
LONDON (Reuters) - After almost three years of successfully predicting a global economic revival, world bond markets are furiously flagging the risk of yet another recession, as well as low inflation for a generation. FILE PHOTO: The flags of China, U.S. and the Chinese Communist Party are displayed in a flag stall at the Yiwu Wholesale Market in Yiwu, Zhejiang province, China, May 10, 2019. REUTERS/Aly Song/File Photo Spooked by the escalating U.S.-China trade war, long-term interest rates embedded in government bond markets - widely seen as the most accurate predictors of future economic activity and inflation - have relapsed into deep troughs. U.S. Treasury yields have plunged 50 basis points in seven weeks, while sub-zero German 10-year bond yields are at record lows. In Japan, Britain, Switzerland and France, borrowing costs are at their lowest since 2016 - when financial markets were hit by a combination of blows including Britain’s shock decision to leave the … [Read more...] about World bonds wave recession flags as future inflation evaporates
May 21 (Reuters) - 0230 GMT: POTENTIAL REMAINS FOR A SURPRISE, BANK SAYS ING Asia said in a research note that despite exit polls showing Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP)-led coalition returning to power, the results, to be announced on Thursday, remained unpredictable. “Our base case remains seeing the Modi administration clinging to power for the second term, but given the anti-incumbent sentiment we saw sweeping through last year’s state-level elections in Chattisgarh, Madhya Pradesh, and Rajasthan, there remains the potential for an election surprise,” it said. “We believe the markets are priced in for (our) baseline scenario of a BJP-led coalition retaining power albeit with a thin margin. Such an outcome means that the election results should have little impact on markets, and in turn should be left to be driven by non-political factors, domestic and external.” A landslide win for the BJP alliance would come as a … [Read more...] about INDIA LIVE-Election results still unpredictable – ING Asia
May 20 (Reuters) - 0630 GMT: WAIT FOR RESULTS, SOME SAY, AS POLLS SHOW MODI HEADING FOR COMFORTABLE WIN Some opposition politicians in India are taking comfort in the wrong predictions made by pollsters in the U.S. presidential election in 2016, the Brexit referendum also in 2016 and in last week’s Australian election. Most of the exit polls in India show the ruling Bharatiya Janata Party (BJP)-led alliance winning about 300 seats in the 543-member parliament, a comfortable majority and above predictions made before the six-week election got underway in April. The opposition Congress party was a distant second. “I believe the exit polls are all wrong,” said Congress leader Shashi Tharoor in a tweet. “In Australia last weekend, 56 different exit polls proved wrong. In India, many people don’t tell pollsters the truth fearing they might be from the Government.” Officials seal an Electronic Voting Machine at a booth in Kolkata after voting closed on … [Read more...] about INDIA LIVE-Some Indians ask, can exit polls fail?
MUMBAI/BENGALURU (Reuters) - Indian equities, rupee and bonds are set to rally on Monday after almost all exit polls suggested that the Prime Minister Narendra Modi-led National Democratic Alliance (NDA) was likely to secure a clear mandate at the 2019 national elections. FILE PHOTO: Voters stand in queues as they wait to cast their vote outside a polling station during the final phase of general election in Chandigarh, India, May 19, 2019. REUTERS/Ajay Verma/File Photo “The market was working with the assumption that the NDA would need to ally with other parties to form the government. To the extent the exit polls are predicting an outright victory for the NDA, we could see a 5-10% equity market rally in the coming weeks,” said Saurabh Mukherjea, founder of Marcellus Investment Managers. Votes are set to be counted on May 23 and exit polls suggest a better showing for the NDA than what was expected in recent weeks. The NDA is projected to win 287 seats in the … [Read more...] about Exit polls cheer India’s ruling party; markets set to rally