Why RBI may not aggressively cut rates in H1 FY2013

Posted by: Deepa Vasudevan on Mon, Apr 9th, 2012

FY12 ended with (a) a market already crowded with government paper and (b) a structural liquidity deficit that was partly eased with an end-of-fiscal year CRR cut.  FY13 has begun with an ambitious borrowing program. The Union budget announced a fiscal deficit target of 5.1% of GDP for 2012-13. The deficit is to be financed through gross market borrowings of Rs.513590 crore. Read more