MARKET EYE-Indian certificates of deposit rates jump
* Yields on both the Reuters three-month certificate of deposit (CD) benchmark and the one-year CD rose by 10 basis points each as dealers cited strong selling by funds. * Traders said funds were selling due to liquidity tightness as their short-term funds are attracting less inflows. * Lenders were also preparing to issue CDs to meet deposit growth targets ahead of the end of the January-March quarter, bankers said. * Another factor is the prospect of less RBI bond purchases via open market operations, which would keep liquidity tight despite a cut in the cash reserve ratio, * "Selling was seen by foreign banks post central bank governor's press meet as there was no concrete statement on OMOs," said Ashish Jalan, manager, SPA Securities, discussing an afternoon conference call with analysts by RBI Governor Duvvuri Subbarao. * Cash conditions worsened with banks borrowing 1.04 trillion rupees from the RBI, double the central bank's stated comfort zone for the cash deficit of 600 billion rupees. * The three-month CD benchmark ended at 8.55 percent, while the one-year CD ended at 8.80 percent. (email@example.com/ firstname.lastname@example.org)
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DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.
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