Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

RBS’s Kapur Says India Likely to Increase Rates Next Quarter

Dec. 16 (Bloomberg) -- Gaurav Kapur, senior India economist at Royal Bank of Scotland NV, comments on the outlook for interest rates after the Reserve Bank of India kept them unchanged after six increases this year.

The central bank cut the statutory liquidity ratio, or the proportion of deposits lenders need to invest in government bonds, to 24 percent from 25 percent from Dec. 18.

“The reduction in the statutory liquidity ratio is negative for bonds as it may reduce demand. But overall, the cut will help improve liquidity, and may soften short-term rates. Still, a rate increase in the January to March quarter is likely and that depends on how the liquidity situation stabilizes.

“With the fuel price hike, inflation will get a further leg up, and RBI will continue watching inflation very carefully.”

To contact the reporter on this story: V. Ramakrishnan in Mumbai at rvenkatarama@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.