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MNI Credit Weekly: Le Vendredi Noir
The Indian central bank kept policy...........>
INDIA: The Indian central bank kept policy unchanged (alongside expectations) as
still hot inflation tied the bank's hands despite a board that's likely still in
favour of further policy easing.
- In lieu of another rate cut, the bank have attempted to boost credit supply in
India by loosening bank's cash requirements on certain loans, boosting liquidity
supply and freeing up lending rules for SMEs.
- The decision resulted in a decent fall in the Indian sovereign yield curve and
supported regional equities but the read-through for INR was more limited.
- This keeps focus on inflation going forward, with markets now watching for a
pullback in CPI to the bank's 2-6% target which would provide the greenlight for
more headline policy easing.
- January CPI is due on February 12th. Early estimates are for an above-target
7.4% reading.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.