Top headlines: RBI holds rates, Pfizer withdraws vaccine application & more

The RBI governor said the gross domestic product will rise 10.5 per cent in 2021-22.
RBI keeps rates unchanged, invites retail investors directly to gilt mkt

The Reserve Bank of India (RBI) kept its policy repo rate unchanged at 4 per cent and reverse repo rate at 3.35 per cent, and promised an accommodative stance as long as necessary to revive growth and come out of the Covid-19 induced stress. The central bank said it will restore the cash-reserve ratio (CRR) to its normal levels in two phases, 3.5 per cent (from 3 per cent now) effective March 27, and then at 4 per cent from May. his would mean banks will again have to set aside money with the central bank. The special relaxation of 100 basis points was made to tide over the Covid induced stress situation last year. Read more

Inflation worries play on RBI's mind, dampen mood of bond market

Reserve Bank of India governor walked a tightrope on Friday as the six-member monetary policy committee (MPC) kept the interest rate unchanged for the fourth consecutive policy review while maintaining the accommodative stance despite projecting higher inflation in the first half of the next financial year. Though the status quo was in line with market expectation, a section of the market was also expecting a rate cut after the Union Budget presented earlier pushed the growth pedal with greater resolve. Read more

Covid-19: Pfizer withdraws Emergency Use Authorisation application in India

Pharma major Pfizer on Friday said it has decided to withdraw its application for Emergency Use Authorisation (EUA) of its COVID-19 vaccine in India. Pfizer was the first pharmaceutical firm to seek an emergency use authorisation from the Drugs Controller General of India (DCGI) for its COVID-19 vaccine in the country, after it secured such clearance in the UK and Bahrain. Read more

Spike in India bank's stressed loans slower due to govt measures: Moody's

Global rating agency Moody’s said The Indian government's support measures for bank borrowers have softened growth in non-performing loans (NPLs), averting the risk of a sharp deterioration in asset quality. The Financial Stability Report in January 2021 had estimated that gross non-performing assets of banks in India may grow from 7.5 per cent in September 2020 to 13.5 Per cent by September 2021 under baseline scenario. Read more

Cost of borrowing to be reasonable; yields expected at FY21 level: DEA Secy

The government will borrow about Rs 12 lakh crore for the next fiscal year at a reasonable rate, Economic Affairs Secretary Tarun Bajaj said expressing hope that the yield would be around the current year's level. He said that the government will ensure its record borrowing programme for 2021-22 doesn't crowd out the private sector if credit demand picks up. Due to the ample liquidity in the market, the cost of borrowing for the government declined during the 2020-21. Read more

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