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Apr 07 2021, 5:10 PM
April 07 2021, 10:02 AM
April 07 2021, 5:10 PM
(Bloomberg)
(Bloomberg)
Indiaâs central bank took a step toward formalizing quantitative easing, pledging to buy up to 1 trillion rupees ($14 billion) of bonds this quarter to keep borrowing costs low and support the economyâs recovery.
The debt purchases under the program in the secondary market will start from April 15, Reserve Bank of India Governor Shaktikanta Das said Wednesday, after policy makers held the benchmark repurchase rate at a record low 4%, a decision predicted by all 30 economists surveyed by Bloomberg.
Bonds and stocks rallied, with the 10-year bond yield dropping as much as 7 basis points and the S&P BSE Sensex index extending gains to 1.3%. The rupee slid 1.3% against the dollar.
Mumbai: India s central bank formalized a quantitative easing program, pledging to buy up to 1 trillion rupees ($13.5 billion) of bonds in the secondary market this quarter as it sought to keep borrowing costs low to support an economic recovery.
The debt purchases will start from April 15, Reserve Bank of India Governor Shaktikanta Das said Wednesday, after policy makers held the benchmark repurchase rate at a record low 4%, a decision predicted by all 30 economists surveyed by Bloomberg.
Bonds rallied, with the 10-year bond yield dropping 11 basis points from an intraday high of 6.19% to 6.08%, while the rupee fell 0.6% against the dollar. The benchmark stock index extended gains to 1.2% after Das s speech.
India takes step down QE road with $14 billion bond-buy plan
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Last Updated: Apr 07, 2021, 04:32 PM IST
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Synopsis
The debt purchases under the program in the secondary market will start from April 15, Reserve Bank of India Governor Shaktikanta Das said Wednesday.
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By Anirban Nag and Subhadip Sircar
India’s central bank took a step toward formalizing quantitative easing, pledging to buy up to 1 trillion rupees ($14 billion) of bonds this quarter to keep borrowing costs low and support the economy’s recovery.
The debt purchases under the program in the secondary market will start from April 15, Reserve Bank of India Governor Shaktikanta Das said Wednesday, after policy makers held the benchmark repurchase rate at a record low 4%, a decision predicted by all 30 economists surveyed by Bloomberg.
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