RBI’s forex strategy yields better results than IMF approach, says deputy governor Poonam Gupta
Reserve Bank of India deputy governor Poonam Gupta defended the central bank’s currency management strategy. She stated that building foreign exchange reserves and intervening in the currency market yield better outcomes. Gupta also indicated that there is scope for easing monetary policy. This is due to growth being below aspirations and inflation remaining benign.
RBI draft norms aim to speed up cross-border remittances, mandate same-day credit
The Reserve Bank of India has proposed measures to speed up cross-border inward remittances, aiming for same-day credit to beneficiaries’ accounts. Banks will be required to reconcile nostro accounts near real-time and implement straight-through processing for faster settlements, with new guidelines taking effect six months after finalization.
A divided Fed cuts rate by 25 bps, sets end to balance-sheet runoff
The Federal Reserve has again cut interest rates by a quarter percentage point, citing a softening labour market and rising employment risks. Policymakers also announced an end to shrinking their asset portfolio by December 1. While economic growth is described as moderate, inflation remains elevated.
Indices hit 13-month high on hopes of India-US trade deal
Indian stock markets reached 13-month highs on Wednesday, fueled by optimism surrounding a potential US-India trade deal and anticipation of a US Federal Reserve interest rate cut. Both Nifty and Sensex saw significant gains, with analysts predicting further all-time highs driven by strong performance in IT, BFSI, and Oil and Gas sectors.
Sebi’s fee cut proposal sparks selloff in AMCs, brokerage stocks
Mutual fund fees and brokerage caps proposed by the capital markets regulator sent shares of brokerage firms and asset management companies tumbling. Investors fear a significant hit on revenues and profitability, with Jefferies estimating a 30-33% earnings impact on some AMCs. Mutual fund officials anticipate brokerages and distributors will bear the brunt of these changes.