India Forums



Go Back   India Forums > News & Current Affairs > India News > Money
FAQ Members List Calendar Search Today's Posts Mark Forums Read


Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 10-05-2016, 10:31 PM
megri's Avatar
megri megri is offline
Administrator
 
Join Date: Dec 2004
Location: Chandigarh India
Posts: 1,350
Default Credit Policy Review by Khushwant Pahwa, FIAI, FIA

In its first credit policy review, the newly constituted Monetary Policy Committee (MPC) reduced the repo rate by 25 bps. Thus, the repo rate has been cut from 6.50% to 6.25% and the reverse repo rate from 6.0% to 5.75%, while the cash reserve ratio (CRR) remains unchanged at 4%.

Outlook: Bond Yields and Impact on Actuarial Valuations

Low and stable inflation, continuing weak private investments, potential of strong capital flows from debt FPIs and, importantly, RBI highlighting the fact that a more appropriate real rate for India is around 1.25% to 1.75% (as against 1.50% to 2.00% currently) are all factors that provide room for further easing of rates and are supportive of lower yields going forward.

From actuarial valuation of employee benefits perspective, the Companies have already experienced a fall of up to 85 bps in the discount rates during the first two quarters of this financial year. With room for further lowering of interest rates, we expect to see liabilities and expenses rise significantly compared to last financial year

__________________
Founder & Creative Mind of Megrisoft
www.indiabook.com
Entertainment
Please Do Not Spam Our Forum

Last edited by megri : 10-05-2016 at 10:47 PM.
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

All times are GMT +5.5. The time now is 08:41 PM.


Powered by vBulletin Version 3.5.5
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.