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<keyword id="19991358" type="General" weightage="100" keywordseo="Indian-markets" source="keywords">Indian markets</keyword> are navigating choppy waters as global economic shifts, from rate cuts to evolving political climates, create new pressure points across the financial landscape, according to a recent report by ANI attributed originally to the Union Bank of India. The domestic stock and bond markets showed signs of strain, with <keyword id="19910363" type="General" weightage="20" keywordseo="bond-yields" source="keywords">bond yields</keyword> witnessing slight adjustments. India’s 10-year government bond yield dipped to 6.82%, a decrease from the previous session, reflecting cautious investor sentiment as the markets react to shifting global indicators. Meanwhile, the 5-year bond yield remained steady at 6.76%, a signal of lingering hesitation amid economic unpredictability. In the currency market, the rupee faced a notable decline, ending the day at ₹84.3725 against the US dollar, slipping from its prior close of ₹84.2800. Market analysts point to significant capital outflows as a key factor, with investors moving funds to perceived safer assets overseas. This migration has weighed heavily on the rupee, underlining the currency’s vulnerability in an environment of global economic flux. India’s stock market bore the brunt of this volatility, with key indices falling over 1%, effectively erasing the gains of a previous rally. This abrupt drop reportedly reflects renewed investor anxiety, largely triggered by the recent <keyword id="20189882" type="General" weightage="20" keywordseo="US-presidential-election" source="keywords">US presidential election</keyword> results. Experts suggest that the election has introduced a fresh layer of uncertainty, not only for the US economy but for global markets, impacting everything from policy decisions to investor sentiment. Analysts are also keeping a close eye on upcoming decisions by central banks, which will likely shape the path forward for the Indian equities market. Commodities showed contrasting trends, with Brent crude prices falling on lower demand expectations, as economic indicators point toward cautious spending globally. Gold, on the other hand, experienced a modest rise as investors sought refuge in safe-haven assets, highlighting a shift towards risk aversion among market participants. Globally, major central banks made coordinated efforts to sustain economic growth, with the Bank of England (BoE) announcing a 25 basis-point cut, lowering its benchmark rate to 4.75%. The BoE’s Monetary Policy Committee (MPC) largely backed this move to counter inflation, which has been declining, albeit gradually. Across the Atlantic, the US Federal Reserve mirrored this action with its own 25 basis-point cut, a sign of confidence in the ongoing economic recovery. Both rate cuts, though modest, signal a global trend towards caution as economies work to balance growth with stability. In Asia, the People’s Bank of China (PBoC) maintained its supportive stance. Governor Pan Gongsheng sought to reassure foreign investors by reaffirming the PBoC’s commitment to growth-oriented policies. Pan emphasized enhanced communication and pledged to open China’s financial services sector further, aiming to attract more international participants. Europe, meanwhile, faced mixed economic signals. Germany reported a steep 2.5% drop in industrial production in September, signalling a slowdown in manufacturing, while the Eurozone saw a mild 0.5% rise in retail sales, reflecting cautious consumer optimism in the region. Adding another layer to the global economic landscape, the European Union’s Climate Change Service warned that 2024 could be the hottest year on record, underscoring urgent climate challenges just as the UN COP29 climate summit approaches. The summit, set to take place in Azerbaijan, aims to rally increased funding for climate action, though tempered expectations linger in light of recent US political shifts. On the domestic front, Niti Aayog CEO BVR Subrahmanyam spoke about India’s potential role in pivotal global trade agreements, specifically the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These partnerships, Subrahmanyam suggested, could bolster India’s Micro, Small, and Medium Enterprises (MSME) sector, which currently accounts for 40% of India’s exports, offering a strategic advantage for Indian trade in an interconnected world. As the Indian markets digest these developments, experts believe continued volatility could be the theme for the coming months. (with ANI inputs)

Indian markets under pressure as global rate cuts stir uncertainty, new report says

<ul class="summary-list"><li>Billionaire investor Ray Dalio says he is worried by global debt levels and central bank policy.</li><li>Returning to "artificial low real rates" could cause a depreciation in debt value, Dalio said.</li></ul>Yesterday, the Federal Reserve made a jumbo rate cut, its first cut in over four years as the central bank shifts its focus from fighting inflation to holding the job market together. Yet, billionaire investor Ray Dalio isn't convinced that the Fed and other central banks' moves to lower rates will address the big problem: surging debt levels. Dalio said the amount of debt held by governments around the world is historically unprecedented, and could lead to a depreciation of debt as central banks push borrowing costs lower.Dalio is increasingly worried by "the enormous amount of debt that is being created by governments and monetized by central banks," particularly in the US, he said in an interview with CNBC's "Squawk Box Asia."Global debt held by governments, companies, and individuals is estimated to be around $315 trillion, according to data from the Institute of International Finance."Those magnitudes have never existed in my lifetime," he said.And the value of debt could depreciate if central banks keep lowering interest rates, Dalio said."I see a big depreciation in the value of that debt through a combination of artificial low real rates, so you won't be compensated," he said.The US has accumulated debt totaling $35.3 trillion, which Dalio called " enormous.""The challenge of the Federal Reserve is to keep interest rates high enough that they're good for the creditor, while keeping them not so high that they're problematic for the debtor," he said.Dalio said the US will likely continue monetizing its debt, and likened the trajectory to that of Japan, which kept rates low, depreciating the yen. "I think as time goes on, the path will be increasingly toward monetizing that debt, following a path very similar to Japan," he said."The value of a Japanese bond has gone down by 90% so that there's a tremendous tax through artificially giving you a lower yield each year," he said.

Billionaire investor Ray Dalio warns debt is being devalued as governments pile it up and central banks keep rates artificially low

<ul><li>The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword> will conclude the three-day <keyword id="19913109" type="General" weightage="20" keywordseo="Monetary-Policy-Committee" source="keywords">Monetary Policy Committee</keyword> (<keyword id="19918491" type="General" weightage="20" keywordseo="MPC" source="keywords">MPC</keyword>) meeting today.</li><li>The central bank is expected to announce its decision on policy rates.</li><li>The <keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword> has maintained the <keyword id="20094323" type="General" weightage="100" keywordseo="repo-rate" source="keywords">repo rate</keyword> at 6.50% for the past nine meetings.</li></ul>The Reserve Bank of India (RBI) is set to conclude the three-day Monetary Policy Committee (MPC) meeting today, with Governor <keyword id="19913110" type="General" weightage="20" keywordseo="Shaktikanta-Das" source="keywords">Shaktikanta Das</keyword> expected to announce the central bank's decision on policy rates. The meeting, which <a href="https://www.businessinsider.in/finance/news/rbis-monetary-policy-committee-meeting-begins-today-announcement-on-october-9/articleshow/113999887.cms">began</a> on October 7, has garnered significant attention, as the RBI has maintained the repo rate at 6.50% for the past nine meetings. The repo rate has remained steady since the RBI adopted a cautious stance to balance inflation control and <keyword id="19900794" type="General" weightage="20" keywordseo="economic-growth" source="keywords">economic growth</keyword>. Key factors that the MPC is weighing include persistent inflationary pressures, particularly in food prices, as well as global economic uncertainties. According to data from the Ministry of Statistics &amp; Programme Implementation, while All India Consumer Price Index (CPI) inflation moderated to 3.65% in August--within the RBI's target band of 2-6%. <keyword id="19999654" type="General" weightage="20" keywordseo="food-inflation" source="keywords">Food inflation</keyword> remains elevated at 5.65%, above the central bank's medium-term target of 4%. This, coupled with rising global crude oil prices due to geopolitical tensions in West Asia, has intensified concerns over inflation. Despite these challenges, the RBI has so far opted for a status quo on the repo rate, aiming to foster economic recovery after the pandemic. However, today's announcement will be closely watched to see if the central bank shifts its stance, especially given the external pressures and uncertainties surrounding global markets. Economists, however, have noted that the RBI will not make any changes in its policy stance before December. "With the focus on taming headline inflation, the RBI is likely to hold the rates although the core inflation is within the limit. It is possible the RBI may shift to the neutral stand" said M Govind Rao, Member, of the Fourteenth Finance Commission and former Director, of the National Institute of Public Finance and Policy. On September 18, the US Federal Reserve announced a steep 50 basis points interest cut in its review meeting. US Fed announced the rate cuts after holding interest rates steady for eight straight meetings. "In this overarching macroeconomic setting of heightened geopolitical tensions, core inflation inching upwards, oil price volatility, and high food inflation, we anticipate a change in the RBI's policy stance from "withdrawal of accommodation" to "neutral" at its forthcoming MPC meeting on October 9, 2024. However, we do not see any rate action coming and the benchmark interest rates may not undergo any change" said Manoranjan Sharma, Chief Economist, Infomerics Ratings. Earlier this month the central government appointed three new members to the monetary policy committee. The MPC comprises three members from the RBI and three external members appointed by the Central Government. With inputs from ANI. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/byd-emax-7-electric-mpv-launched-in-india-starting-at-26-9-lakh/slidelist/114046121.cms">BYD eMax 7 electric MPV launched in India starting at ₹26.9 lakh</a> <a href="https://www.businessinsider.in/personal-finance/news/heres-how-a-reddit-user-was-able-to-get-an-iphone-16-at-under-27000/articleshow/114035179.cms">Here’s how a Reddit user was able to get an iPhone 16 at under ₹27,000</a> <a href="https://www.businessinsider.in/stock-market/news/hyundai-swiggy-ather-upcoming-large-ipos-in-india/slidelist/114014140.cms">Hyundai To Swiggy: Everyone wants to cash in on the IPO bonanza</a>

RBI MPC announcement today: Rates unlikely to change, RBI may change stance to neutral

<ul><li>The <keyword id="19899810" type="General" weightage="20" keywordseo="Reserve-Bank-of-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Reserve Bank of India" meta.hostid="261" meta.entityid="Reserve Bank of India">Reserve Bank of India</keyword>’s <keyword id="20104157" type="General" weightage="20" keywordseo="monetary-policy" source="keywords">monetary policy</keyword> meeting is set to begin today.</li><li>The central bank will announce the outcome of the <keyword id="22684891" type="General" weightage="20" keywordseo="MPC-meeting" source="keywords">MPC meeting</keyword> on October 9.</li><li><keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords">RBI</keyword> has kept the <keyword id="20094323" type="General" weightage="20" keywordseo="repo-rate" source="keywords">repo rate</keyword> unchanged for the last nine consecutive meetings.</li></ul>The Reserve Bank of India (RBI) is set to begin its three-day monetary policy meeting on Monday and will run from October 7 to October 9. All eyes are on the outcome, as the central bank has kept the repo rate unchanged for the last nine consecutive meetings. The repo rate, currently at 6.50%, has remained steady since the RBI adopted a cautious stance to balance inflation control and economic growth. The Monetary Policy Committee (MPC), headed by RBI Governor <keyword id="19913110" type="General" weightage="20" keywordseo="Shaktikanta-Das" source="keywords">Shaktikanta Das</keyword>, is expected to weigh key factors like inflationary trends, global economic uncertainties, and domestic growth prospects. Inflation continues to be a challenge, particularly in food and fuel prices, which saw a surge earlier this year. As per the data from the Ministry of Statistics &amp; Programme Implementation, though the All India Consumer Price inflation in August was 3.65%, which is under the RBI target band the food inflation stands at 5.65% and it remains above the RBI's medium-term target of 4%. Despite these inflationary pressures, the RBI has opted for a status quo on the repo rate, primarily to support economic recovery post-pandemic. However, there are rising concerns that external factors, like the rising global crude oil prices and tensions in West Asia, may compel the RBI to reconsider its current stance. Earlier this month the central government appointed three new members to the monetary policy committee. The MPC comprises three members from the RBI and three external members appointed by the Central Government. The newly reconstituted committee consists of the Governor of the Reserve Bank of India as the Chairperson, ex officio; the Deputy Governor of the Reserve Bank of India, in charge of monetary policy--Member, ex officio, and one officer of the Reserve Bank of India, nominated by the Central Board -- Member, ex officio. The new external members included in the MPC are Professor Ram Singh, Director, Delhi School of Economics, University of Delhi, Saugata Bhattacharya, economist; and Dr. Nagesh Kumar, Director and Chief Executive, Institute for Studies in Industrial Development. Market participants and analysts are closely monitoring this meeting for any forward guidance on future rate actions. Many believe the central bank will continue its wait-and-watch approach, but a surprise rate hike cannot be entirely ruled out. On September 18, the <keyword id="19901377" type="General" weightage="20" keywordseo="US-Federal-Reserve" source="keywords">US Federal Reserve</keyword> announced a steep 50 basis points interest cut in its review meeting. US Fed announced the rate cuts after holding interest rates steady for eight straight meetings. The outcome of the MPC meeting will be announced on October 9 and will set the tone for future monetary policies amid the changing global economic landscape. The Reserve Bank of India (RBI) will commence its three-day monetary policy meeting on Monday, October 7th, and continue until October 9th. The result of this meeting is eagerly anticipated, as the central bank has maintained a steady repo rate for the past nine consecutive meetings. The repo rate has remained at 6.50% since the RBI adopted a cautious approach to balance inflation control and economic growth. The Monetary Policy Committee (MPC), led by RBI Governor Shaktikanta Das, will consider various factors, including inflationary trends, global economic uncertainties, and domestic growth prospects. Inflation remains a challenge, particularly in food and fuel prices, which surged earlier this year. According to data from the Ministry of Statistics &amp; Programme Implementation, All India Consumer Price inflation in August was 3.65%, within the RBI's target band, however, food inflation stands at 5.65%, exceeding the RBI's medium-term target of 4%. Despite inflationary pressures, the RBI has opted to maintain the repo rate to support economic recovery post-pandemic. Nonetheless, rising concerns about external factors, such as increasing global crude oil prices due to tensions in West Asia, may prompt the RBI to reassess its current stance. Earlier this month, the central government appointed three new members to the monetary policy committee. The MPC consists of three members from the RBI and three external members appointed by the Central Government. It is worth noting that on September 18, the US Federal Reserve announced a substantial 50 basis points interest rate cut in its review meeting, reversing its previous stance of holding rates steady for eight consecutive meetings. With inputs from ANI. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/september-auto-sales-automakers-report-a-decline-mahindra-and-mahindra-overtakes-tata-motors/articleshow/113925972.cms">September Auto sales – Automakers report a decline, Mahindra and Mahindra overtakes Tata Motors</a> <a href="https://www.businessinsider.in/business/auto/news/ola-electric-continues-to-lose-market-share-as-bajaj-auto-and-tvs-motor-gain/articleshow/113900252.cms">Ola Electric continues to lose market share as Bajaj Auto and TVS Motor gain</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-is-using-ai-powered-technology-to-block-spam-calls-and-messages/articleshow/113691942.cms">Airtel is using AI-powered technology to block spam calls and messages</a>

RBI's monetary policy committee meeting begins today, announcement on October 9

<ul class="summary-list"><li>Restaurant chain Guzman y Gomez went public in Australia, raising $162 million.</li><li>Thursday's IPO is Australia's largest in nearly a year, with shares up 36% from the offer price.</li></ul>Asia's version of <a target="_blank" href="https://www.businessinsider.com/chipotle-boy-bowl-promo-vest-wearing-finance-bros-2024-6">Chipotle </a>— a Mexican fast-casual chain called Guzman y Gomez — just went public in Australia.Shares of the quick-service restaurant began trading on the Australian Securities Exchange on Thursday. The initial public offering brings GYG's valuation to 2.2 billion Australian dollars, or $1.47 billion.The IPO is Australia's biggest in nearly a year. The Sydney-based chain sought to raise about $162 million, or about one-sixth of the company's value, through the limited-sale offering.In the first few hours after trading, the company's shares climbed 36% from the offer price of about $15.According to GYG's prospectus, the company will use the money to expand to more than 1,000 outlets in Australia over the next two decades. <a target="_blank" href="https://www.businessinsider.com/mcdonalds-ai-voice-order-technology-drive-thrus-2024-6">McDonald's</a> and <a target="_blank" href="https://www.businessinsider.com/restaurant-brands-that-pe-firm-roark-capital-owns-subway-dunkin-2024-6">Subway</a> have about 970 and 1220 restaurants in Australia, respectively.GYG was founded by a former hedge fund trader, Steven Marks, in Sydney in 2005. It now has 185 restaurants in Australia, 17 in Singapore, five in Japan, and four in the US. The company said it notched $506 million in sales last year."We are still early in our mission to reinvent fast food and change the way the masses eat," Marks said in a statement to Business Insider.In comparison, <a target="_blank" href="https://www.businessinsider.com/chipotle-quick-service-fewer-people-order-ahead-speed-fast-restaurant-2024-4">Chipotle</a> has 3,400 restaurants across North America and Europe. The <a target="_blank" href="https://www.businessinsider.com/chipotle-burrito-bowl-hacks-half-scoops-double-meat-hyphen-robot-2023-9">US-based Mexican fast food chain</a> is valued at $94 billion and posted a revenue of nearly $10 billion last year. Chipotle owns and operates all of its restaurants, unlike GYG, which follows a franchise model. Franchisors make money from an annual licensing fee and take a percentage of the location's revenue.<h2 id="cb0e7da6-c17e-4e01-8c31-4214b233616c">Mixed analyst sentiment</h2>Despite the chain's growth in the last two decades, some analysts are bearish.In a Wednesday note before the IPO, <a target="_blank" href="https://www.morningstar.com.au/insights/stocks/250416/is-guzman-y-gomez-the-next-mcdonalds">Morningstar analysts</a> valued the stock at 15 Australian dollars a share. They said that the offer price of 22 Australian dollars was expensive, given that GYG is at a far earlier stage than heavyweight competitors like McDonald's and Domino's. And they're not sure GYG can follow through on its plan to open 1,000 stores.GYG is backed by TDM Growth Partners, Barrenjoey Private Capital, Aware Super, Cooper Investors, Hyperion Asset Management, Firetrail Investments, and QVG Capital."The company and its highly conflicted investors and advisors have decided that A$2.2 billion is a reasonable valuation of this business," Michael Hutchens, the founder of financial modeling company Modano, <a target="_blank" href="https://www.linkedin.com/posts/michaelhutchens_the-upcoming-guzman-y-gomez-ipo-will-further-activity-7206836945283391488-ZcPu/">wrote in a post on LinkedIn</a>."This is irrespective of fact that it is struggling to make money and would in fact have gone broke over the past year if it didn't quietly do a pre-IPO raising of A$135 million," Hutchens wrote.GYG joins 11 other companies that have listed on the ASX so far this year. The ASX has seen a big slowdown in IPOs in the last few years as pandemic stimulus payments ended and the central bank raised interest rates to calm inflation. The <a target="_blank" href="https://www.asx.com.au/blog/listed-at-asx/asx-capital-markets-2023-year-in-review-and-2024-outlook">number of floats in 2023 was 45</a>, compared to <a target="_blank" href="https://www.asx.com.au/blog/investor-update/2023/asx-capital-markets-2022-a-year-in-review">107 in 2022 and a record 241 listings in 2021</a>.GYG's shares are not open to the general public. They are only available to institutional investors, eligible employees and franchise holders, and retail clients of brokerages who have been allocated GYG shares, the company said in a pre-IPO release.

Asia's answer to Chipotle is now a $1.5 billion public company 

<ul><li>The Indian rupee had been volatile for almost a year now and hit several fresh all-time lows as the US dollar strengthened against major global currencies.</li><li>The rupee weakness, according to Moody's, may slow in what it earlier expected India to be one of emerging Asia's best-performing economies.</li><li>Further currency weakness could put the region's central banks in a bind, said Moody's.</li></ul>New Delhi [India], March 23 (ANI): The risk of weakness in currencies in the emerging economies in Asia is worrisome, and more so the risk is greater in India with a new bout of rupee weakness, which could force the Reserve Bank of India to "press harder on the brakes", according to Moody's Analytics. The rupee weakness, according to Moody's, may slow in what it earlier expected India to be one of emerging Asia's best-performing economies. The Indian rupee had been volatile for almost a year now and hit several fresh all-time lows as the US dollar strengthened against major global currencies. In October 2022, the rupee breached the 83 mark for the first time in its history. The rupee is currently hovering above 82 per US dollar. Depleting forex reserves faced with the high cost of imported goods, and the ongoing monetary policy tightening by the <keyword id="6356435" type="General" weightage="50" keywordseo="us-federal-reserve" source="Orion">US Federal Reserve</keyword> triggered the currency's depreciation. Investors tend to move towards stable markets, such as the US, for better and stable returns amid any tight monetary policy. Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee. "The risk of currency weakness in emerging Asia is especially worrisome given its status as the cradle of the EM (emerging market) recovery. Our outlook calls for economies in emerging Asia to handily outperform the rest of the EM cohort as China's rebound gains momentum and as pent-up demand, still on hold from the Delta wave in India and Southeast Asia, props up consumer spending," Moody's said in a report. "But further currency weakness could put the region's central banks in a bind," it said. About India's inflation, the report said it was no longer rising, but higher food prices were a key concern. "Although the (RBI February monetary policy) meeting's minutes showed only one member concerned with the Fed's pace of tightening, this could quickly change when the bank meets in April, especially if faster Fed tightening and market jitters cause the rupee to weaken further," the report said. The Monetary Policy Committee (MPC) of the RBI in the February meeting decided to raise the repo rate, at which the RBI lends money to all commercial banks, by 25 basis points to 6.5 per cent. The rate hiking spree started in May last year to check inflation. Since May last year, the RBI has increased the short-term lending rate (repo rate) by 250 basis points, to contain inflation, driven mainly by external factors, especially global supply chain disruptions following the Russia-Ukraine war outbreak. Retail inflation in India fell marginally but remained above RBI's 6 per cent upper tolerance band for the second straight month in February 2023, with the Consumer Price Index pegged at 6.44 per cent. In January, the retail inflation was 6.52 per cent. India's retail inflation was above RBI's 6 per cent target for three consecutive quarters and had managed to fall back to the RBI's comfort zone only in November 2022. Under the flexible inflation targeting framework, the RBI is deemed to have failed in managing price rises if the CPI-based inflation is outside the 2-6 per cent range for three quarters in a row. (ANI)

Greater risk of rupee weakness; RBI could press hard on brakes: Moody's

<ul class="summary-list"><li>Central banks boosted their gold stockpiles amid a backlash against the dollar.</li><li>Global reserves grew by 228.4 tons in the first quarter, the World Gold Council reported.</li></ul>Central banks around the world are boosting stockpiles of <a href="https://markets.businessinsider.com/commodities/gold-price">gold</a> amid a growing backlash against the dollar.In the first quarter, 228.4 tons of gold were added to global reserves, the <a href="https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q1-2023" target="_blank" rel="noopener">World Gold Council</a> reported on Friday. While that marks a 40% decline from the fourth quarter, it's a 176% increase from a year ago.It also marked a new record high for the first three months of any year, topping the prior first-quarter record, which was set in 2013, by 34%."This is all the more impressive considering it follows the record-breaking pace of demand last year," the report said.The top gold buyers in the first quarter were largely in Asia. Singapore's central bank led the way with purchases of 69 tons, followed by China with 58 tons, Turkey with 30 tons, and India with 7 tons, according to the WGC.Meanwhile, updates from Russia's central bank showed a decline of 6 tons during the quarter — possibly due to coin minting— though the total is 28 tons higher from last year, it added. Separate indications recently have pointed to <a href="https://markets.businessinsider.com/news/commodities/russia-gold-economy-sanctions-ukraine-obscure-buyers-war-markets-bullion-2023-5">Russian gold flooding into the UAE, Turkey and Hong Kong</a>.The US dollar traditionally has been a mainstay of central bank reserves. But the recent surge in demand for gold has been seen as <a href="https://markets.businessinsider.com/news/currencies/de-dollarization-central-bank-reserves-gold-price-china-russia-sanctions-2023-4">a sign of de-dollarization</a> after the greenback became weaponized to put financial pressure on Russia for its war on Ukraine."Thus the oldest and most traditional of assets, gold, is now a vehicle of central bank revolt against the dollar," Ruchir Sharma, chair of Rockefeller International, wrote in <a href="https://www.ft.com/content/e9c78b99-8a29-47e2-b5bf-9f7542608cf6" target="_blank" rel="noopener nofollow">The Financial Times</a> last month.And the WGC said Friday that central bank purchases of gold remain robust, with little indicating the trend will change in the short term. It reiterated its view that gold buying will continue to outweigh selling as the second quarter begins. Meanwhile, the price of gold has been closing in on a fresh record high, though it pulled back closer to $2,000 on Friday. Gold is up 11% so far this year and up 25% from a November low.The rise is the result of a significant flight to safety among investors, Bob Haberkorn, a senior market strategist at RJO Futures, told Insider.In his view, this comes as the Federal Reserve has had trouble taming high inflation, while its aggressive interest rate hikes have stirred turmoil in the banking sector and lifted the potential for a credit crunch. "So basically, buying gold right now is almost a bet against the Fed," he said, later adding that "the Fed is not in a position to be much more aggressive for too long on rates."

Central banks are boosting stockpiles of gold in their reserves amid a backlash against the dollar

<ul><li>The developing <keyword id="21718" type="General" weightage="100" keywordseo="asia" source="Orion">Asia</keyword>'s economy will grow 4.2 per cent this year and 4.6 per cent next year, <keyword id="6355976" type="General" weightage="80" keywordseo="adb" source="Orion">ADB</keyword> said.</li><li>The Asian Development Bank (ADB) has lowered its economic growth forecasts for the developing Asia region, amid a worsened global outlook.</li><li>Growth in China is expected to slow in 2022 to 3 per cent against a 3.3 per cent expansion predicted in a September report.</li></ul> The Manila-based bank maintained the gross domestic product growth projections for <keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> at 7 per cent this fiscal year and 7.2 per cent next fiscal year. The Bank also added even with the downgraded forecast, developing Asia will still do better than other regions globally, both in terms of growth and inflation. The developing Asia's economy will grow 4.2 per cent this year and 4.6 per cent next year, ADB said in a regular supplement to the <keyword id="1006845" type="General" weightage="50" keywordseo="asian-development-outlook" source="Orion">Asian Development Outlook</keyword> (<keyword id="199985" type="General" weightage="50" keywordseo="ado" source="Orion">ADO</keyword>) 2022, released on Wednesday. ADB estimated in September that the economy of the region would grow 4.3 per cent in 2022 and 4.9 per cent in 2023. Monetary policy tightening by central banks globally and in the region, the protracted Russian invasion of Ukraine, and recurring lockdowns in the People's Republic of China (PRC) are slowing down developing Asia's recovery from the Covid-19 pandemic, ADB said. Restrictions under the "zero-Covid" approach, along with a struggling property market, have led to another downgrade of the PRC's growth outlook. "Asia and the Pacific will continue to recover, but worsening global conditions mean that the region's momentum is losing some steam as we head into the new year," said ADB Chief Economist <keyword id="128536" type="General" weightage="50" keywordseo="albert-park" source="Orion">Albert Park</keyword>. "Governments will need to work together more closely to overcome the lingering challenges of Covid-19, combat the effects of high food and energy prices--especially on the poor and vulnerable--and ensure a sustainable, inclusive economic recovery." ADB lowered its forecast for inflation in the developing Asia and the Pacific this year to 4.4 per cent from 4.5 per cent. However, the bank raised its projection for next year to 4.2 per cent from 4 per cent, due to lingering inflationary pressures from energy and food. Growth in China, which is the largest economy in Asia, is expected to slow in 2022 to 3 per cent against a 3.3 per cent expansion predicted in a September report. The forecast for next year was cut to 4.3 per cent from 4.5 per cent, due to the global slowdown, according to the Bank. Gross domestic product growth projections for India were maintained at 7 per cent this fiscal year and 7.2 per cent next fiscal year, according to the ADB. Even with the downgraded forecasts, the ADB expects developing Asia will still do better than other regions globally, both in terms of growth and inflation. ADB's growth forecast for <keyword id="53564" type="General" weightage="20" keywordseo="southeast-asia" source="Orion">Southeast Asia</keyword> this year was raised to 5.5 per cent from 5.1 per cent, amid robust consumption and tourism recovery in Malaysia, the Philippines, Thailand, and Vietnam. Projections for next year, however, were lowered to 4.7 per cent from 5 per cent due to weakening global demand. The growth forecast for the <keyword id="15779915" type="General" weightage="50" keywordseo="caucasus-and-central-asia" source="Orion">Caucasus and Central Asia</keyword> this year was upgraded to 4.8 per cent from 3.9 per cent, while the projection for the Pacific was raised to 5.3 per cent from 4.7 per cent, due to a strong tourism recovery in Fiji. ADO is published every April, with an update in September and brief supplements published normally in July and December. Developing Asia refers to the bank's 46 developing members. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/tata-motors-to-hike-prices-of-commercial-vehicles-by-up-to-2-from-january/articleshow/96193372.cms">Tata Motors to hike prices of commercial vehicles by up to 2% from January</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/not-good-for-govt-to-share-data-in-aggregated-form-g20-sherpa-amitabh-kant/articleshow/96192773.cms">'Not good' for govt to share data in aggregated form: G20 Sherpa Amitabh Kant</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/five-women-newsmakers-in-2022-in-india-droupadi-murmu-madhabi-puri-buch-samantha-ruth-prabhu-in-the-list/slidelist/96191677.cms">Droupadi Murmu, Madhabi Puri Buch, Samantha Ruth Prabhu and more: Five women newsmakers of 2022</a>

ADB trims economic growth forecast for developing Asia; retains India FY23 GDP growth at 7%

<ul class="summary-list"><li>The West has tried for more than two years to cripple Moscow's finances by way of sanctions.</li><li>But the West hasn't blocked all Russian banks' access to SWIFT due to potential global impact.</li></ul>When Russia first invaded Ukraine, the West slapped Moscow with swathes of sanctions in an attempt to cripple its finances and force it to end the war quickly.However, more than two years later, the war is ongoing and the Kremlin is touting its <a target="_blank" href="https://www.businessinsider.com/russias-economy-roaring-start-sanctions-stock-markets-putin-central-bank-2024-4">robust economy.</a>But it's not because the sanctions are not effective. It's really because the West hasn't gone all the way. There's one major thing the West could, but won't, do: kill all Russian banks' access to the Society for Worldwide Interbank Financial Telecommunications, or SWIFT.<h2 id="1b0f6063-804e-487a-8e55-39b22b26b104">The West hasn't gone all in to block Russian access to SWIFT</h2>From February to May 2022, the <a target="_blank" href="https://www.businessinsider.com/us-eu-announce-some-russian-banks-removed-from-swift-2022-2">US and European Union</a> repeatedly moved to block some Russian banks' access to SWIFT — but spared those that process international oil and gas payments.That's because Russia is a major energy exporter, so abruptly cutting off all its banks' access would have a massive knock-on impact globally."There'd be a lot of collateral damage that would affect non-Russian banks and other banks in the international banking system," Alex Capri, a senior lecturer at the National University of Singapore, told Business Insider.The international banking system is interconnected. <a target="_blank" href="https://www.tradefinanceglobal.com/en-sg/trade-finance/">Trade financing</a> involving multiple parties moves down complex supply chains as commodities move from the supplier to the end buyer."If you paralyze the entire Russian banking system, there'll be other banks around the world that will take the brunt of it as well, because they finance trade and other commodities," said Capri, who described cutting off the access of all Russian banks as "the nuclear option."However, if things get "really bad," such as in a rapid expansion of the war in Ukraine, the West could "absolutely" double down and shut the Russian banks from SWIFT, added Capri, who was the regional leader of KPMG's international trade and customs practice in Asia Pacific and a former international trade specialist at the US Customs Service.But it may not come to such a step after all.<h2 id="aadb4ad3-b1f6-46a1-922a-66137f818f77">'Russia's economy is in deep, deep trouble'</h2>Despite the West's frustration with how Russia's economy still appears to be holding up, the sanctions appear to be finally working.This is in part due to secondary sanctions. The West has tightened its restrictions <a target="_blank" rel="" href="https://www.businessinsider.com/china-biggest-banks-stop-russia-payments-icbc-ccb-boc-2024-2">against companies in third-party countries </a>that still do business with Russia.So while Russia has been able to hang on to its economy so far, the economy is in "deep, deep trouble" in the medium term, Richard Portes, an economics professor at London Business School, told BI.Portes cited the scaling back of Russia's "natural trade partners" — those near the country geographically — as a major stumbling stone."Russia is not trading with Europe, so the opportunities, the possibilities for profitable, sensible trade, are very limited," Portes told BI.While Russia has managed to pivot most of its oil exports from Europe — previously its single largest market — to <a target="_blank" href="https://www.businessinsider.com/russia-economy-divert-oil-exports-europe-india-china-circumvent-sanctions-2023-12">India and China,</a> such a move comes with costs that include lower selling prices and logistical challenges."These alternatives cannot properly, effectively, efficiently, productively replace trading with Europe," Portes said.Human capital and investment are also flowing out due to Russia's <a target="_blank" href="https://www.businessinsider.com/russian-economy-brain-drain-labor-shortage-workforce-exodus-capital-flight-2023-9">brain drain</a> and the West's restrictions on investment and trade."In five years, you're going see a really disastrous slowdown in the Russian economy," said Portes, who called for stronger sanctions enforcement.<h2 id="493819ca-3fb9-4443-82f4-8bab3ebb9124">Russia cannot create foreign reserves</h2>One key reason why Russia's economy is unlikely to hold up is due to the finite nature of its reserves."Russia can compensate for a fall in revenues from natural resource exports using its gold and currency reserves, as well as the effect of shrinking imports," Alexander Kolyandr, a financial analyst, wrote in a post for the <a target="_blank" href="https://carnegieendowment.org/politika/92158">Carnegie Endowment for International Peace</a> on April 9. "But reserves are not infinite, and there is a limit to how far imports can contract."Portes agreed with this stance."Unless there was a big increase in the oil price or some other windfall, they would have major problems financing imports over the next couple of years in the near-term future," Portes said.In a reflection of how financially isolated Russia has become, the country has limited options other than the Chinese yuan for its reserves, the Central Bank of Russia said in a <a target="_blank" href="https://www.cbr.ru/StaticHtml/File/159640/kgo_2023.pdf">report in March.</a>In April 2022, Russia's central bank governor Elvira Nabiullina warned <a target="_blank" rel="" href="https://www.businessinsider.com/russian-central-banker-warns-country-reserves-finite-nabiullina-ukraine-war-2022-4">Russia's reserves</a> can't last forever."A significant problem is that they are running out of foreign exchange reserves, and you can't create foreign reserves," Portes added.

The West can't completely isolate Russian banks because it would be disastrous beyond Russia

New Delhi [India], March 6 (ANI): The <keyword id="19899810" type="General" weightage="20" keywordseo="reserve-bank-of-india" source="keywords">Reserve Bank of India</keyword> (<keyword id="19899808" type="General" weightage="20" keywordseo="rbi" source="keywords">RBI</keyword>) has issued a directive aimed at enhancing consumer choice and competition in the credit card market. In a circular released on Wednesday, the RBI mandated that card issuers must provide their eligible customers with the option to choose from multiple card networks at the time of issuance or renewal. According to a press release, the central bank prohibited card issuers from entering into agreements with card networks that restrict them from availing the services of other card networks. The directive addresses concerns raised about restrictive practices prevalent in the credit card industry. The RBI identified arrangements between card issuers and card networks that limit customer choice as detrimental to the availability of options in the market. By taking decisive steps to promote consumer choice and fair competition, the RBI aims to foster a more dynamic and inclusive financial ecosystem. Key highlights of the RBI directive include the requirement for card issuers to offer eligible customers the choice of selecting from multiple card networks at the time of issuance or renewal of credit cards. This provision seeks to empower consumers by providing them with greater flexibility and control over their financial products. Additionally, the RBI has banned card issuers from entering into agreements with card networks that restrain them from availing the services of other card networks, aiming to promote fair competition and prevent anti-competitive practices. The directive provides definitions for authorized card networks, including American Express Banking Corp., Diners Club International Ltd., MasterCard Asia/Pacific Pte. Ltd., <keyword id="20846648" type="General" weightage="20" keywordseo="national-payments-corporation-of-india-rupay" source="keywords">National Payments Corporation of India-Rupay</keyword>, and <keyword id="20846647" type="General" weightage="20" keywordseo="visa-worldwide-pte" source="keywords">Visa Worldwide Pte</keyword>. <keyword id="20040916" type="General" weightage="20" keywordseo="limited" source="keywords">Limited</keyword>. Certain exemptions have been outlined as well, including an exemption for credit card issuers with a smaller customer base of 10 lakh or fewer active cards. The implementation timeline for the directive is set to be six months from the date of issuance of the circular, allowing card issuers and card networks sufficient time to comply with the new requirements. The directive underscores the RBI's commitment to promoting transparency, choice, and competition in the credit card market, with a focus on creating a more consumer-friendly financial ecosystem. With the issuance of this directive, the RBI reaffirms its role as a proactive regulator dedicated to safeguarding the interests of consumers and promoting a competitive and resilient financial system. (ANI)

RBI directs card issuers to offer choice among card networks, bans restrictive agreements

<ul><li>The workers' <keyword id="6369957" type="General" weightage="20" keywordseo="remittances" source="Orion">remittances</keyword> recorded an inflow of $2.4 billion in September . </li><li>Workers' remittances play an important role in <keyword id="3001" type="General" weightage="20" keywordseo="pakistan" source="Orion">Pakistan</keyword>'s economy as they are one of the major sources of foreign exchange.</li><li>The remittances decreased by 6.3 per cent as compared to the same period last year. </li></ul> Remittances sent by overseas Pakistani workers decreased 10.5 per cent in September 2022 on a month-on-month basis, the <keyword id="166005" type="General" weightage="20" keywordseo="state-bank-of-pakistan" source="Orion">State Bank of Pakistan</keyword> has said. The workers' remittances recorded an inflow of $2.4 billion in September as compared to the previous month's figure of $2.7 billion, the central bank said in its official data on Tuesday, adding that it decreased by 12.3 per cent on a year-on-year basis, <keyword id="106387" type="General" weightage="20" keywordseo="xinhua-news-agency" source="Orion">Xinhua news agency</keyword> reported. With a cumulative inflow of $7.7 billion during the July-September period in the fiscal year of 2023, the remittances decreased by 6.3 per cent as compared to the same period last year, the figures showed. In September, the remittances mainly came from <keyword id="50996" type="General" weightage="20" keywordseo="saudi-arabia" source="Orion">Saudi Arabia</keyword> with $616.6 million, the UAE with $474.3 million, the UK with $307.8 million, and the US with $268.1 million, according to the bank. Workers' remittances play an important role in Pakistan's economy as they are one of the major sources of foreign exchange. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/india-is-facing-the-worst-shortage-of-nurses-in-recent-years-says-kpmg-report/articleshow/94789539.cms">India is facing the worst shortage of nurses in recent years, says KPMG report</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sports/news/roger-binny-likely-to-replace-ganguly-as-bcci-president-shah-to-remain-secretary/articleshow/94788409.cms">Roger Binny likely to replace Ganguly as BCCI president, Shah to remain secretary</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/karthikeya-2-hits-100-crore-viewing-minutes-in-48-hours-on-ott/articleshow/94788745.cms">'Karthikeya 2' hits 100 crore viewing minutes in 48 hours on OTT</a>

Pakistan's remittances decrease 10.5% in Sept

The rupee depreciated 4 paise to 79.87 against the US dollar in opening trade on Wednesday, tracking the strength of the American currency in the overseas market. At the interbank foreign exchange, the rupee opened at 79.84 against the dollar, then fell to 79.87, registering a decline of 4 paise over the last close. On Tuesday, the rupee moved up 1 paisa to settle at 79.83 against the dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.11 per cent to 108.74. The dollar is supported by hawkish comments by <keyword id="1936090" type="General" weightage="80" keywordseo="minneapolis-federal-reserve-bank" source="Orion">Minneapolis Federal Reserve Bank</keyword> President <keyword id="1169195" type="General" weightage="80" keywordseo="neel-kashkari" source="Orion">Neel Kashkari</keyword> who said his biggest fear is the US central bank misreads the extent and persistence of price pressures and will need to deliver even more aggressive rate hikes to control inflation, said <keyword id="12163709" type="General" weightage="80" keywordseo="sriram-iyer" source="Orion">Sriram Iyer</keyword>, Senior Research Analyst at <keyword id="197560" type="General" weightage="80" keywordseo="reliance-securities" source="Orion">Reliance Securities</keyword>. Iyer added that most Asian and emerging market peers remained weak on Wednesday morning and could weigh on sentiments. Meanwhile, global oil benchmark Brent crude futures fell 0.46 per cent to USD 99.76 per barrel. On the domestic equity market front, the 30-share <keyword id="6484188" type="General" weightage="80" keywordseo="sensex" source="Orion">Sensex</keyword> was trading 141.45 points or 0.24 per cent lower at 58,889.85, while the broader NSE Nifty was down 50.15 points or 0.29 per cent to 17,527.35. Foreign institutional investors turned net buyers in the capital market on Tuesday as they purchased shares worth Rs 563.00 crore, as per exchange data. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/nearly-80-smes-expect-a-pick-up-in-orderbook-in-the-next-few-months-survey/articleshow/93755536.cms">Nearly 80% SMEs expect a pick up in orderbook in the next few months - survey</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/pandemic-pushes-back-asia-pacifics-fight-against-extreme-poverty-by-2-years-adb/articleshow/93754822.cms">Pandemic pushes back Asia Pacific's fight against extreme poverty by 2 years: ADB</a>

You Searched For "central banks asia" and got 12 results

Indian markets under pressure as global rate cuts stir uncertainty, new report says

BI India Bureau

Billionaire investor Ray Dalio warns debt is being devalued as governments pile it up and central banks keep rates artificially low

Kelly Cloonan

RBI MPC announcement today: Rates unlikely to change, RBI may change stance to neutral

BI India Bureau

RBI's monetary policy committee meeting begins today, announcement on October 9

BI India Bureau

Asia's answer to Chipotle is now a $1.5 billion public company

Shubhangi Goel

Greater risk of rupee weakness; RBI could press hard on brakes: Moody's

ANI

Central banks are boosting stockpiles of gold in their reserves amid a backlash against the dollar

Filip De Mott

ADB trims economic growth forecast for developing Asia; retains India FY23 GDP growth at 7%

ANI

The West can't completely isolate Russian banks because it would be disastrous beyond Russia

Huileng Tan

RBI directs card issuers to offer choice among card networks, bans restrictive agreements

ANI

Pakistan's remittances decrease 10.5% in Sept

IANS

Rupee falls 4 paise to 79.87/US dollar in early trade

PTI

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