Stocks, rupee recoup some losses on Rajan's rate comments
MUMBAI (Reuters) - Government bonds, rupee and stocks recouped some losses on Friday after the RBI chief indicated the difference between the emergency funding rate and the main lending rate will be reduced in future.
Reserve Bank of India Governor Raghuram Rajan indicated the marginal standing facility rate would be lowered more than the quantum of repo rate hikes.
Rajan surprised markets in his maiden policy review earlier on Friday by raising repo rates to ward off rising inflation while scaling back some emergency measures put in place to support the rupee, which hit record lows in late August.
The Nifty retraced losses to 1.6 percent from a fall Of nearly 3 percent earlier.
The rupee recovered to 61.98/62.00 per dollar from 62.20/23.
India's 1-Year OIS recovered 10 basis points to 8.82 percent.
(Reporting by Archana Narayanan and Abhishek Vishnoi; Editing by Kim Coghill)
- Tweet this
- Share this
- Digg this
- Iran hangs woman convicted of killing alleged rapist
- Google's Pichai to oversee major products and services
- UPDATE 1-UK's Labour suffers setback as leader in Scotland quits
- India picks Israel's Spike anti-tank missile over U.S. Javelin - source
- Modi takes tea, but no questions, in first press event as PM
The latest Reuters poll of 20 economists taken over the past week shows Asia's third-largest economy will likely grow 5.5 percent this fiscal year and 6.4 percent the next, slightly better than 5.3 percent and 6.3 percent expected in the July poll. Full Article
Euro zone risks "relapse into recession" without structural reforms - Draghi. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article