RBI brand fall: loan of Rs 12 lakh crore will be taken by Modi government
Hello Friends, Prime Minister Narendra Modi’s government has raised the limit of loan to Kanwar to reduce the revenue due to the recession caused by the Coronavirus. A loan of Rs 12 lakh crore will be taken in the current financial year against Rs 7.8 lakh crore fixed earlier. That is, the government has increased the loan limit by more than 50 percent.
India The benchmark Sovereign brand in India has fallen the most in 3 years. After February 2017, when there was an increase of 27 BPS. The realization of the 10-year-old brand rose 22 basis points to 6.19 percent. Which is the biggest growth since February 2017?
The government will borrow for economic package: PM Modi
Let us tell you that for the financial year starting April 1, it had announced to borrow 12 lakh crore rupees. This is more than 7.8 trillion rupees presented in the budget. The rise in lending, the debt of the Reserve Bank of India, is a step towards increasing support for the market. Which has seen global funds migrating? The government is in such an economic situation for the first time in more than four decades.
A new message released for RBI:
A new message has been issued to increase the support of RBI’s debt market. For the first time in 4 decades, the economy is expected to decline. Due to which foreign investors have withdrawn a huge amount of money from the debt market.
RBI will have to increase open market purchases:
ICICI Securities Primary Dealership Limited chief economist A Prasanna has said that it would not be wrong to say that the government’s revised lending program has come as a sharp blow to the brand market. He also said that RBI will have to increase the open market purchases. In the hall itself, RBI has revived the Operation Twist program. Where he sold the bills and bought the brand.
Let me tell you that there is nothing like this. RBI has not announced any large scale brand buying schemes. Market participants, including the former RBI governor, have said that the RBI should consider buying the Sovereign brand at auction.
The government can also borrow less than Rs. 12 lakh crores:
A finance ministry official said on Monday that the fiscal gap is expected to be around 5.5% of GDP by March 2021. The government may also borrow less than the revised target of Rs 12 lakh crore. Traders said the yield on the top-rated 10-year corporate note has increased by over 20 BPS. This is the biggest jump since April 16.