Thought for
the day
“The person who doesn't scatter the morning dew will not
comb gray hairs.”
-
Hunter
S. Thompson (American, 1937-2005)
Word of the
day
Crepuscule
(n)
Twilight, Dusk
(Source: Dictionary.com)
Shri Nārada Uvāca
Ain’t “Legacy” a dynastic word?
Would Congress also claim the legacy of Subhash Chandra
Bose, B. R. Ambedkar, Acharya Kriplani, Purushottam Das Tandon, Jai Prakash, Ram
Manohar Lohia, Morarjj Desai, Jagjiwan Ram, V. P. Singh, and P. V. Narasimha
Rao among others.
What about Pheroz Gandhi and Sanjay Gandhi?
Some said, some unsaid - II
Said: “it is
important to break the spiral of rising price pressures in order to curb the erosion
of financial saving and strengthen the foundations of growth. It is in this
context that the LAF repo rate has been increased by 25 basis points.”
Unsaid: The negative real rates persisting for
long have eroded financial savings and weakened the foundations of growth.
Expect rates to remain high or even go higher, till the time real rates become
positive so as to incentivize higher financial savings.
Said: “With the
reduction of the MSF rate and the increase in the repo rate in this review, the
process of re-aligning the interest rate corridor to normal monetary policy
operations is now complete.”
Unsaid: The normalization of monetary policy means
that the short term rates have bottomed at elevated level and the repo rate may
not become the effective rate in near term. Moreover, it would not be
reasonable to expect further easing of liquidity and/or foreign currency
deposit/borrowing rules.
Said: “On the
external sector, a perceptible narrowing of the trade deficit coupled with
policy interventions have brought some calm to the foreign exchange market, but
normalcy will be restored only when the demand for dollars from public sector
oil marketing companies is fully returned to the market.”
Unsaid: The calm in currency market may not endure
for long. Expect closure of swap window for OMCs in near future.
RBI calendar
·
Mid-Quarter Review of Monetary Policy for
2013-14 on Wednesday, December 18, 2013.
·
Third Quarter Review of Monetary Policy for
2013-14 on , January 28, 2014.
Tasks to be completed by end November
·
Place the draft report of the group on Basel III
Regulation on Countercyclical Capital Buffer on the RBI’s website for inviting
comments/suggestions from various stakeholders.
·
Place a draft of the proposed framework for
Domestic Systemically Important Banks (D-SIBs) on the RBI’s website.
·
Issue updated guidelines on stress testing of
banks.
·
To issue the Scheme of Subsidiarisation of
foreign banks
·
Revised restructuring guidelines for NBFCs
Tasks to be completed by end 2013
·
Issue
final guidelines on unhedged foreign currency exposures.
·
Launch Inflation Indexed National Saving
Securities for retail investors.
·
Launch cash settled 10-year interest rate
futures contracts.
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