NDPMS Wealth Management

June 05, 2014 With market expectations so high for action, the European Central Bank has no choice but to loosen its monetary policy on Thursday, economists said. Economists expect the central bank to cut its main refinancing rate by 10 or 15 basis points — bringing the rate down to 0.15% or 0.10% — and to introduce a negative deposit rate of 0.1%. Additionally, economists also expect the ECB to stimulate more lending by creating a new long-term refinancing operation. Some economists also believe there is the possibility that during the press conference, ECB President Mario Draghi will keep the door open for outright quantitative easing and asset purchases later in the year. The only option the ECB doesn’t have is to do nothing, they said. René Defossez, fixed income strategist at Natixis, said since the May monetary policy meeting, central bank members “have made a lot of promises,” which have helped push the euro down against the U.S. dollar, easing some of the pr...

RBI Policy impact on ICICI Bank technical daily chart !! Reserve Bank of India Governor Raghuram Rajan has kept interest rates unchanged at 8  % in his first post Modi win monetary policy. However the SLR ratio has been cut by 50 basis points which means that bank would be able to infuse more money in the economy by increasing their lending capabilities. SLR suggest to amount that the commercial banks require to maintain in the form of govt approved securities or gold before lending credit to its customers.