16 results on '"REPO RATES"'
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2. Repo Rates as Reference Interest Rates: Testing the Expectations Hypothesis of the Term Structure of Interest Rates.
- Author
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Nenadović, Sanja
- Subjects
YIELD curve (Finance) ,INTEREST rates ,INTEREST rate swaps ,SECURED loans ,TERM loans ,MONEY market - Abstract
The subject of this paper is the consideration of the role of the repo market and the quality of repo rates in the formation of reference interest rates that would be used to assess the value of financial instruments and derivatives. Unsecured money markets carry a certain level of risk; thus, the question arises whether the existing reference interest rates should be replaced by repo rates or other interest rates on secured loans. Through operations on the short-term money market, Central Banks try to influence interest rates with long maturities. One of the most well-known theories that considers the question of the relationship between short-term and long-term interest rates is the expectations hypothesis. In this paper, the expectations hypothesis is tested on the example of daily data of overnight interest rates related to secured interbank loans. Two samples were used, and term premiums were estimated for both short-term (up to one year using LIBOR interest rates) and longterm maturities (from two to ten years using ICE swap interest rates). The hypothesis is tested using two traditional econometric tests. The first test examines the relationship between the long-term change in the overnight rate on secured loans and term premiums for different maturities. The second test examines the relationship between the short-term change in long-term rates from the unsecured market and term premiums. By applying both tests together, it should be determined how well the overnight interest rates on secured interbank loans predict long-term interest rates on unsecured loans. The tests were also applied to the overnight interest rates of interbank loans that are not secured in order to get a better comparative picture. The results show that collateralized interest rates are good indicators of benchmark interest rates and, in some cases, even more accurate predictors of long-term interest rates. [ABSTRACT FROM AUTHOR]
- Published
- 2022
- Full Text
- View/download PDF
3. New Emerging Trends on Money Market in Indian Scenario.
- Author
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Sunil Manohar Subbaiah, M., Nagabhushana, K., and Ramakrishna, H.
- Subjects
ECONOMIC trends ,MONEY market ,FINANCIAL institutions - Abstract
The money market is one of the most important segmentof the Indian financial system.Money market is a wholesale debt market for low risk highly liquidate short term instrument. This market is dominated mostly by government banks and financial institutions.Money market is the term designed to include the financial institution which handle the purchase, sale,and transfer of short term credit instruments. Money market plays a vital role in developing the Indian economy it refers lending and borrowing money to banks at short term purpose within one year. Money market regulated by the reserve bank of India and it is providing the money to trade and industry it helps in implementing monetary policy. The most active part of the money market is the market for overnight call and term money between banks and institutions the term short term means generally period up to one year and nearly substitutes to money is used to denote any financial assets which can be quickly converted into money with minimum transaction cost. Money market intermediaries supply only short term funds to individual and corporate customer they consist of commercial banks, co-operative banks. A paper deals with present trend in money market and short term money development of Indian economy. [ABSTRACT FROM AUTHOR]
- Published
- 2016
4. Quantitative Easing, Safe Asset Scarcity and Bank Lending
- Author
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Tischer, Johannes
- Subjects
safe asset scarcity ,G21 ,ddc:330 ,repo rates ,monetary transmission ,bank lending ,Quantitative easing ,G11 ,E58 ,E51 - Abstract
The Eurosystem's Public Sector Purchase Programme (PSPP) increased the scarcity of safe assets, which caused significant declines and substantial dispersion in European repo rates. However, banks holding these safe assets benefited from this development: First, using the German security register, this paper shows that scarcity affects bank funding costs, as their collateral supply is determined by their ex ante securities holdings and repo rates. Second, it makes use of the German credit register to show that asset scarcity had real effects: Banks more exposed to asset scarcity increased their credit supply.
- Published
- 2021
5. Reserves were not so ample after all
- Author
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Copeland, Adam, Duffie, Darrell, and Yang, Yilin
- Subjects
D82 ,G14 ,ddc:330 ,repo rates ,D47 ,central bank balance sheet ,payments ,reserves ,Treasuries - Abstract
The Federal Reserve's "balance-sheet normalization," which reduced aggregate reserves between 2017 and September 2019, increased repo rate distortions, the severity of rate spikes, and intraday payment timing stresses, culminating with a significant disruption in Treasury repo markets in mid-September 2019. We show that repo rates rose above efficient-market levels when the total reserve balances held at the Federal Reserve by the largest repo-active bank holding companies declined and that repo rate spikes are strongly associated with delayed intraday payments of reserves to these large bank holding companies. Intraday payment timing stresses are magnified by early-morning settlement of Treasury security issuances. Substantially higher aggregate levels of reserves than existed in the period leading up to September 2019 would likely have eliminated most or all of these payment timing stresses and repo rate spikes.
- Published
- 2021
6. Nowcasting Networks
- Author
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Marc Chataigner, Stéphane Crépey, Jiang Pu, and Crépey, Stéphane
- Subjects
Applied Mathematics ,swaption implied normal volatilities ,[QFIN.CP] Quantitative Finance [q-fin]/Computational Finance [q-fin.CP] ,outliers ,Computational Finance (q-fin.CP) ,neural networks ,Computer Science Applications ,FOS: Economics and business ,Quantitative Finance - Computational Finance ,autoencoders ,repo rates ,data completion ,equity derivative Black-Scholes implied volatilities ,Finance ,data compression - Abstract
We devise a neural network based compression/completion methodology for financial nowcasting. The latter is meant in a broad sense encompassing completion of gridded values, interpolation, or outlier detection, in the context of financial time series of curves or surfaces (also applicable in higher dimensions, at least in theory). In particular, we introduce an original architecture amenable to the treatment of data defined at variable grid nodes (by far the most common situation in financial nowcasting applications, so that PCA or classical autoencoder methods are not applicable). This is illustrated by three case studies on real data sets. First, we introduce our approach on repo curves data (with moving time-to-maturity as calendar time passes). Second, we show that our approach outperforms elementary interpolation benchmarks on an equity derivative surfaces data set (with moving time-to-maturity again). We also obtain a satisfying performance for outlier detection and surface completion. Third, we benchmark our approach against PCA on at-the-money swaption surfaces redefined at constant expiry/tenor grid nodes. Our approach is then shown to perform as well as (even if not obviously better than) the PCA which, however, is not be applicable to the native, raw data defined on a moving time-to-expiry grid)., Comment: his article has been accepted for publication in Journal of Computational Finance, publishedby Incisive Media Ltd
- Published
- 2020
7. Burying Libor
- Author
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Klingler, Sven and Syrstad, Olav
- Subjects
LIBOR ,G18 ,collateral ,JEL: G18 ,jel:E43 ,Benchmark rates ,jel:G12 ,Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212 [VDP] ,Libor ,JEL: E43 ,jel:G18 ,ddc:330 ,repo rates ,G12 ,financial regulation ,benchmark rates ,JEL: G12 ,E43 - Abstract
We argue that the planned transition toward alternative benchmark rates gives reason to mourn Libor. Guided by a model in which banks and non-banks can lend to each other, subject to realistic regulatory constraints, we show empirically that tighter financial regulation increases interbank rates but lowers broad rates (in which lenders are non-banks) and that all market rates increase with more Treasury bill issuance. Hence, the proportion of non-bank lenders affects the alternative rates, introducing variation in the benchmark that is unrelated to banks' marginal funding costs and creating a basis between regions with interbank rates and broad rates.
- Published
- 2019
8. Fiscal and Other Macroeconomic Policies for an Emerging Economy
- Author
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Basu, Kaushik, author
- Published
- 2015
- Full Text
- View/download PDF
9. The Forecasts-based Instrument Rule and Repo Rates Decisions in Sweden. How closely interlinked?
- Author
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Tura-Gawron, Karolina
- Subjects
E61 ,inflation targeting regime ,ddc:330 ,repo rates ,decision making process ,E58 ,E52 - Abstract
The Central Bank of Sweden declares the use of the Svensson's concept of inflation forecast targeting (IFT). It means that the repo rate decision making process depends on the central banks' forecasts. The concept evolved from the strict IFT with the decision making algorithm called the 'rule of thumb' to the flexible IFT which later includes the optimal monetary policy plan. The aim of the article is to: (1) analyse the influence of the inflation rate and GDP growth rate on the repo rate decisions, (2) analyse the influence of the inflation rate and GDP growth rate forecasts (in two year horizon) on the repo rate decisions in Sweden in years 1999-2006. The main research question is as follows: did the Monetary Policy Commitee in Sweden in years 1999-2006 made the decisions on the repo rates on the basis of forecast-based instrument rules and the rule of the thumb algorithm. The analysis encompasses the repo rates decisions, CPI inflation rate, GDP growth rate, central paths of CPI inflation forecasts and central paths of GDP growth rate forecasts in the two years horizon published by The Central Bank of Sweden in years 1999-2006. The studies are based on the Taylor-type instrument rule and forecast-based Taylor-type instrument rule. The methodology used is multiple linear regression models. The Central Bank of Sweden in years 1999-2006 implemented direct inflation forecast targeting (DIFT) rule. The decision making algorithm was based on the CPI inflation forecasts and rule of the thumb algorithm. The exact rule of the thumb was as follow: if the inflation forecast, in the two year forecast's horizon exceeded the inflation target by 1 p.p., then the central bank raised the repo rate by 0.4 p.p; if is below , then the central bank reduced the repo rate by 0.4 p.p. If the inflation forecast was equal to the inflation target, then the repo rate remained unchanged. The historical repo rates differ from the theoretical estimated rule of the thumb's repo rates by +/-0.28 p.p.
- Published
- 2017
10. Bangladesh Economic Update, September 2011
- Author
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World Bank
- Subjects
MARKET COMPETITION ,GROWTH RATES ,PRIVATE INVESTMENT ,FOOD PRICE ,INFLATIONARY PRESSURES ,COMMODITIES ,FOREIGN EXCHANGE RESERVES ,INFLATION ,EQUIPMENTS ,FISCAL DEFICIT ,BROAD MONEY ,INCOME ,EXPORT GROWTH ,RECESSION ,SHARE PRICES ,GOVERNMENT BORROWING ,COMPETITIVENESS ,RETURNS ,CREDIT GROWTH ,FINANCIAL MARKET ,NON-PERFORMING LOANS ,DOMESTIC BANK ,MORAL HAZARD ,EXCHANGE COMMISSION ,RATE OF GROWTH ,OUTSOURCING ,PRICE INCREASES ,REPO ,PENSIONS ,INSTITUTIONAL INVESTORS ,BALANCE OF PAYMENTS ,INCOMES ,MONETARY FINANCING ,RAPID EXPANSION ,DEMAND GROWTH ,REMITTANCE ,PRICE INFLATION ,EXCESS DEMAND ,CORPORATE GOVERNANCE ,GLOBAL ECONOMY ,CREDIT RATINGS ,INTANGIBLE ASSETS ,BASIS POINTS ,CREDIT FLOWS ,MONETARY POLICY ,TAX COLLECTIONS ,DEFICIT FINANCING ,ECONOMIC COOPERATION ,LIQUIDITY ,INTEREST RATES ,PRICE INDEX ,SMALL BUSINESS ,CONTINGENT LIABILITIES ,DOMESTIC CREDIT ,DEBTS ,CONTRACT RENEGOTIATIONS ,LOAN PORTFOLIO ,ADVANCED ECONOMIES ,WITHHOLDING TAX ,ADMINISTERED PRICE ,TRADE FINANCING ,INCOME TAX ,EXPORTS ,DOMESTIC BORROWING ,CURRENT ACCOUNT BALANCE ,FINANCIAL ACCOUNT ,EXCHANGE RATE ,FINANCIAL INSTITUTIONS ,ECONOMIC ACTIVITIES ,PRIVATE PLACEMENT ,TELECOMMUNICATIONS ,BANKING SERVICES ,DIVERSIFICATION ,TAX BURDEN ,PRICE ADJUSTMENTS ,PRIVATE CREDIT ,CAPITAL ACCOUNT ,EXTERNAL BORROWING ,CREDIT FACILITY ,MARKET DISTORTIONS ,COMMODITY PRICES ,MUTUAL FUNDS ,TAX REVENUES ,DEVELOPING COUNTRIES ,SECURITIES ,DOMESTIC CREDIT GROWTH ,REAL GDP ,CREDIT RATING ,EXPOSURE ,SALES ,REAL ESTATE ,FOREIGN INVESTMENT ,LENDING REQUIREMENTS ,PUBLIC INVESTMENT ,LETTER OF CREDIT ,MARKET ACCESS ,CAPITAL FLOWS ,TAX ,BANKING SYSTEM ,STOCK MARKET ,ECONOMIC GROWTH ,INSURANCE COMPANIES ,BROKERAGE ,WEAK CORPORATE GOVERNANCE ,GOVERNMENT DEBT ,COMMODITY ,EXTERNAL FINANCING ,MONEY GROWTH ,STOCKS ,TOTAL REVENUE ,FINANCIAL SECTOR ,PRICE LEVEL ,ADVANCED COUNTRIES ,EXPATRIATE ,FOOD PRICES ,FOREIGN FINANCING ,RAPID GROWTH ,ADMINISTRATIVE REFORMS ,PRODUCTION INCREASES ,TAX COLLECTION ,ECONOMIC OUTLOOK ,BORROWER ,ASSET PRICES ,INTERMEDIATE GOODS ,LOANABLE FUNDS ,INTERNATIONAL MARKETS ,TRADE DEFICIT ,NET EXPORTS ,DISPUTE RESOLUTION ,STOCK EXCHANGE ,CONSUMER LOANS ,MERCHANT ,DEBT ,BANKING SECTOR ,BANK BORROWING ,TAX RETURNS ,INTEREST RATE CAPS ,ADMINISTERED PRICES ,DEFLATION ,CONSUMER SPENDING ,NON-PERFORMING LOAN ,IPO ,TRADE REFORMS ,RESERVE BANK ,ACCESS TO FINANCE ,CENTRAL BANK ,RESERVE REQUIREMENT ,AGRICULTURE ,FREE TRADE ,INVESTMENT CLIMATE ,MACROECONOMIC POLICIES ,CAPITAL MARKET ,POLICY ENVIRONMENT ,MACROECONOMIC MANAGEMENT ,DEFICITS ,FOREIGN EXCHANGE ,FOREIGN ASSETS ,ACCOUNTING ,GROWTH POTENTIAL ,STRUCTURAL PROBLEMS ,REMITTANCES ,BANK FINANCING ,BENCHMARK ,BROKERAGE HOUSES ,OUTPUT ,OIL PRICES ,RESERVE ,INSURANCE ,TURNOVER ,REGULATOR ,CURRENT ACCOUNT ,FINANCIAL INSTITUTION ,LDCS ,CAPITAL FUNDS ,EXPENDITURES ,CURRENT ACCOUNT SURPLUS ,COMMERCIAL BANKS ,REPO RATES ,STOCK MARKETS ,EQUITY MARKETS ,INFLATIONARY EXPECTATIONS ,AGRICULTURAL PRODUCTS ,LOAN CLASSIFICATION ,INTANGIBLE ,LOAN DECISIONS ,ALLOCATION OF CAPITAL ,LEVY ,SAVINGS ,PETROLEUM PRICES ,RETAIL ,CONSUMER GOODS ,INTEREST RATE ,LEVEL PLAYING FIELD ,EXPENDITURE - Abstract
Real gross domestic product (GDP) grew at 6.7 percent in FY11, continuing the upward trend in growth after declining during FY06-09. This strong performance can be repeated in FY12 if exports continue to grow and if garment exports benefit from the agreement reached during the recent India-Bangladesh Summit, remittances continue to recover, and if investment is boosted by improved infrastructure services particularly power. Risks in the global economy can affect Bangladesh in several ways. The standard and poor (S&P) downgrade of US debt as well as the debt problems in the Euro Zone are affecting the international markets and renewing fears of another global slowdown. This time around, limited fiscal and monetary space in developed countries increases the chances of a protracted slowdown. If this slowdown occurs, it can affect Bangladesh's balance of payments through its impact on exports and remittances, put pressure on the exchange rate, increase economic uncertainty, and, in turn, weaken investment and growth. Domestic policies will also affect Bangladesh's economic prospects. A slow pace of reforms in the investment climate can affect domestic and foreign investment, as can inadequacies in energy supply and the poor quality of roads. The reversal of trade reforms as well as weakening of the financial sector can also affect export growth and investment. Expansionary macroeconomic policies could increase risks on the current account and make inflation management more difficult. Unlike in 2008, Bangladesh has insufficient policy space to cushion the impact of a second global slowdown through fiscal stimulus. packages and monetary easing. Rapid growth in subsidies, sustained high rate of growth of credit to the private sector as well as recourse to monetary financing of the fiscal deficit have led to the erosion of the fiscal and monetary policy space. Much improved fiscal and monetary discipline combined with stronger efforts to address the energy and infrastructure deficits will be critical for sustaining growth performance. Maintaining the long-established tradition of sound macroeconomic management will also be important.
- Published
- 2011
11. India Economic Update, June 2011
- Author
-
World Bank
- Subjects
INVESTOR PERCEPTIONS ,CAPITAL BASES ,EMERGING MARKET COUNTRIES ,REAL INCOME ,TOTAL DEBT ,UNCERTAINTY ,PRIVATE INVESTMENT ,FOOD PRICE ,WHOLESALE PRICE ,FOREIGN EXCHANGE RESERVES ,INFLATION ,TOTAL EXTERNAL DEBT ,CONSUMER PRICES ,EMERGING MARKET ,FISCAL DEFICIT ,INFORMATION TECHNOLOGY ,WEAK DEMAND ,REPO RATE ,EXPORT GROWTH ,IMPORT ,COMPETITIVENESS ,PORTFOLIO INFLOWS ,SUPPLY RESPONSE ,CONSUMER PRICE INDEX ,CREDIT GROWTH ,BONDS ,PUBLIC SPENDING ,TRADE DEFICITS ,WITHDRAWAL ,GOVERNMENT BUDGET ,HIGH INFLATION ,EMERGING MARKETS ,PRICE INCREASES ,REPO ,BANK ACCOUNTS ,MERCHANDISE ,SHORT-TERM DEBT ,RATE OF INFLATION ,BALANCE OF PAYMENTS ,DEMAND GROWTH ,AUCTION ,PRICE WARS ,GLOBAL ECONOMY ,DEREGULATION ,CAPITAL OUTFLOW ,MONETARY POLICY ,TAX COLLECTIONS ,PRIVATE EQUITY ,LONG-TERM INVESTMENT ,SLOWDOWN ,LIQUIDITY ,STRUCTURAL CHANGE ,FISCAL DEFICITS ,DEVELOPMENT POLICY ,PUBLIC DEBT ,INTEREST PAYMENTS ,WORKING CAPITAL ,DOMESTIC CREDIT ,ECONOMIC CONDITIONS ,AUCTIONS ,CONSUMER PRICE INFLATION ,FIXED CAPITAL ,PORTFOLIO INVESTMENT ,CONSUMERS ,GROSS NATIONAL SAVINGS ,MARKET PRICES ,RETAIL PRICES ,HEDGE FUNDS ,ADVANCED ECONOMIES ,INVESTMENT PROJECTS ,SURPLUS ,WTO ,GDP ,CENTRAL GOVERNMENT DEBT ,TRADE BALANCE ,MACROECONOMIC STABILITY ,BASE YEAR ,PORTFOLIO ,DISTORTIONS ,NATIONAL SAVINGS ,CONSOLIDATION ,INCOME TAX ,WHOLESALE PRICE INDEX ,DEBT ISSUES ,POLICY CREDIBILITY ,CURRENT ACCOUNT BALANCE ,FINANCIAL SYSTEM ,MONETARY AGGREGATES ,MARKET FORCES ,MERCHANDISE EXPORTS ,EQUIPMENT ,TELECOMMUNICATIONS ,CURRENCY ,SPREAD ,INFLATION RATES ,CAPITAL ACCOUNT ,DOMESTIC DEMAND ,CAPITAL GOODS ,MERGERS ,EQUITY MARKET ,EXTERNAL BORROWING ,COMMODITY PRICES ,BANK CREDIT ,DEVELOPING COUNTRIES ,DURABLES ,INFLATION RISKS ,REAL GDP ,MARKET SHARE ,EMERGING MARKET ECONOMIES ,PROFIT MARGINS ,REAL APPRECIATION ,SALES ,DEVELOPMENT BANK ,FOREIGN INVESTMENT ,GOVERNMENT BUDGET DEFICIT ,MARKET INFRASTRUCTURE ,TRADING ,TOTAL IMPORTS ,INFLATION EXPECTATIONS ,CAPITAL FORMATION ,MAJOR CURRENCIES ,LOCAL CURRENCY ,VOLATILITY ,INTERNATIONAL PRICES ,CAPITAL FLOWS ,TAX ,FOREIGN INVESTORS ,GLOBAL FINANCIAL SYSTEM ,ECONOMIC GROWTH ,GOVERNMENT DEBT ,DEPRECIATION ,EXTERNAL COMMERCIAL BORROWINGS ,RETAILING ,STOCKS ,TOTAL REVENUE ,DOMESTIC MARKET ,SAFETY NETS ,INVESTING ,SALE ,FINANCIAL CRISIS ,FOOD PRICES ,INFLATION RATE ,LEVEL OF INFLATION ,RESERVES ,TREATY ,SUPPLY SHOCKS ,FOREIGN DIRECT INVESTMENT ,INVENTORIES ,GOVERNMENT BANK ,INTERMEDIATE GOODS ,PORTFOLIO INVESTMENTS ,SURPLUSES ,TRADE DEFICIT ,WAGES ,PRICING POLICY ,EXTERNAL DEBT ,GOLD ,SUPPLY CONDITIONS ,SUPPLY DISRUPTIONS ,SAFETY NET ,INTEREST RATE DIFFERENTIAL ,SHORT-TERM CAPITAL ,REAL INTEREST ,CONSUMER PRICE ,CUSTOMS DUTIES ,ADMINISTERED PRICES ,MARKETING ,RESERVE BANK ,CENTRAL BANK ,RETURN ,AGRICULTURE ,PRIVATE CONSUMPTION ,DOMESTIC DEBT ,M1 ,INVESTMENT CLIMATE ,MACROECONOMIC POLICIES ,M3 ,M2 ,DEFICITS ,MONEY SUPPLY ,FOREIGN EXCHANGE ,ACCOUNTING ,LIBERALIZATION ,PEGS ,AGGREGATE DEMAND ,REMITTANCES ,MARKET PENETRATION ,REAL INTEREST RATES ,SUPPLIERS ,GOVERNMENT FINANCES ,OIL PRICES ,RESERVE ,ENERGY PRICES ,RETAIL TRADE ,SUPPLY CHAIN ,GLOBAL LIQUIDITY ,ECONOMIC DEVELOPMENTS ,CURRENT ACCOUNT ,TOTAL EXPORTS ,DOUBLE TAXATION ,SHORT-TERM EXTERNAL DEBT ,DOLLAR PRICES ,MARKET STABILIZATION ,COMMERCE ,EXPENDITURES ,IMPORTS ,GROWTH RATE ,MACROECONOMIC POLICY ,EXTERNAL COMMERCIAL BORROWING ,REPO RATES ,CORE INFLATION ,INFLATIONARY EXPECTATIONS ,DAMAGES ,FISCAL POLICIES ,MERCHANDISE TRADE ,MONETARY POLICY DECISIONS ,CONSUMPTION GROWTH ,CEREAL PRICES ,BILL ,GOVERNMENT DEFICIT ,TRADE RESTRICTIONS ,TAX RULES ,INTEREST RATE EXPECTATIONS ,DEBT BURDEN ,ADVERSE EFFECTS ,CAPITAL INFLOWS ,PETROLEUM PRICES ,MARKET SHARES ,RETAIL ,CHECKS ,CURRENT ACCOUNT DEFICIT ,ECONOMIC RESEARCH ,INTEREST RATE ,FOREIGN RESERVES ,EXPENDITURE ,DEVELOPMENT POLICIES - Abstract
In fiscal year 2010-11, India's economy has expanded at a rate close to that observed prior to the global financial crisis. However, growth in the second half of the year slowed, and the performance of industry and investment has been particularly disappointing. Despite some fiscal consolidation and monetary tightening, inflation has emerged as a serious concern because of its effects on the poor, who are usually less able to protect themselves against rising prices, and because of its dampening effects on long-term investment, which is sensitive to interest rate expectations. India's economic growth reached 8.5 percent, helped by a strong rebound of the agriculture sector because of good rains in the 2010 monsoon season against the near-drought conditions of 2009. On the external side, exports staged an extraordinary recovery and the current account deficit narrowed, while capital flows slowed driven by a pronounced decline in foreign direct investment. Foreign institutional investment remained robust, however, and external borrowing increased to compensate partially for the decline in Foreign Direct Investment (FDI). The rupee remained stable against the U.S. dollar but showed a small real appreciation against a 36-currency trade weighted index, and Reserve Bank of India foreign reserves increased to more than $310 billion. The central government budget deficit for FY2010-11 is estimated to have reached 6 percent of Gross Domestic Product (GDP), an important contraction from the widened fiscal stance of FY2009-10. Budget implementation benefited from higher-than-expected growth in nominal GDP and related higher tax intake; although the tax-to-GDP ratio is still significantly lower than in FY2007-08. The spending-to-GDP ratio, on the other hand, was reduced by 0.7 percent of GDP despite two supplementary demands for grants.
- Published
- 2011
12. Bangladesh Economic Update, April 2011
- Author
-
World Bank
- Subjects
BANK POLICY ,ECONOMIC PERFORMANCE ,GROWTH RATES ,TAX ,FOREIGN INVESTORS ,BANKING SYSTEM ,STOCK MARKET ,FOOD SUBSIDIES ,PRIVATE INVESTMENT ,FOOD PRICE ,INFLATIONARY PRESSURES ,FOREIGN EXCHANGE RESERVES ,RATES OF INTEREST ,INFRASTRUCTURE PROJECT ,OVERDRAFT ,COMMODITY ,INFLATION ,CONSUMER PRICES ,FISCAL DEFICIT ,MONEY GROWTH ,OPEN MARKET ,STOCKS ,DOMESTIC MARKET ,BROAD MONEY ,BANK LENDING ,FAIR ,REPO RATE ,BENEFICIARIES ,INCOME ,EXPORT GROWTH ,STOCK INDEX ,ECONOMIC CRISIS ,FOOD PRICES ,PUBLIC-PRIVATE PARTNERSHIPS ,CONSUMER PRICE INDEX ,CREDIT GROWTH ,DEMAND FOR FOOD ,PLEDGES ,RESERVES ,GOOD FAITH ,GRAIN PRODUCTION ,TRANSPARENCY ,PRICE INCREASES ,REPO ,MIGRANT WORKERS ,PRIVATE SECTOR CREDIT ,STOCK PRICE ,BALANCE OF PAYMENTS ,SOVEREIGN DEBT ,SUGAR ,INTERMEDIATE GOODS ,REMITTANCE ,BUSINESS ASSOCIATIONS ,INTERNATIONAL MARKETS ,MIGRANT LABOR ,GLOBAL ECONOMY ,OVERDRAFT LOANS ,INFRASTRUCTURE FINANCE ,FOOD GRAINS ,FOOD IMPORTS ,STOCK EXCHANGE ,BASIS POINTS ,TEA ,MONETARY POLICY ,MERCHANT ,LIQUIDITY ,INTEREST RATES ,PRICE INCREASE ,CONSUMER PRICE ,FROZEN FOOD ,PUBLIC DEBT ,BANKING SECTOR ,REGULATORY AUTHORITY ,INTEREST RATE CAP ,BUDGET DEFICIT ,FOOD FOR WORK ,CONSUMPTION EXPENDITURES ,LOCAL MARKET ,CONSUMPTION EXPENDITURE ,RESERVE REQUIREMENT ,POLICY RESPONSES ,INFLATION INDEX ,INVESTMENT CLIMATE ,DEVELOPING ECONOMIES ,ADVANCED ECONOMIES ,MICROCREDIT ,STOCK MARKET VOLATILITY ,MUTUAL FUND ,PHONE NETWORK ,FOREIGN EXCHANGE ,PUBLIC-PRIVATE PARTNERSHIP ,PUBLIC STOCK ,ACCOUNTING ,EXPORT CREDITS ,VULNERABLE GROUP ,REMITTANCES ,FOOD SECURITY ,BUDGETARY ALLOCATION ,CURRENT ACCOUNT BALANCE ,FINANCIAL ACCOUNT ,VILLAGE ,STORAGE CAPACITY ,OUTPUT ,OIL PRICES ,RESERVE ,PRICE TRENDS ,EXCHANGE RATE ,FINANCIAL INSTITUTIONS ,DATES ,INSURANCE ,RETAIL TRADE ,TELECOMMUNICATIONS ,HOUSEHOLDS ,REGULATOR ,FOOD SUBSIDY ,ECONOMIC DEVELOPMENTS ,CURRENT ACCOUNT ,STOCK TRADING ,AGRICULTURAL SECTOR ,FOREIGN EXCHANGE MARKET ,FOOD RESOURCES ,UNION ,HYPOTHECATIONS ,MICROFINANCE INSTITUTIONS ,WHEAT ,POLICY RESPONSE ,MOBILE PHONE ,LOAN ,COMMODITY PRICES ,EXPENDITURES ,CURRENT ACCOUNT SURPLUS ,GROWTH RATE ,MACROECONOMIC POLICY ,DEVELOPING COUNTRIES ,FOOD DISTRIBUTION ,COMMERCIAL BANKS ,NONPERFORMING LOANS ,REPO RATES ,MICROFINANCE ,EXPOSURE ,PUBLIC STOCKS ,REPAYMENT ,SALES ,CREDIT SOURCE ,ISSUANCE ,REGULATORS ,AGRICULTURAL PRODUCTS ,MONEY TRANSFER ,CORRUPTION ,REFUGEE ,REPAYMENT PERIOD ,SAVINGS ,PUBLIC INVESTMENT ,RETAIL ,URBAN AREAS ,FAIR PRICE ,FORMAL BANKING ,INTEREST RATE ,CASH RESERVE ,EXPENDITURE ,INFRASTRUCTURE PROJECTS - Abstract
The outlook for FY2011 has changed since the last macroeconomic update in October 2010.1 While gross development product (GDP) growths is still projected to be around 6.2 percent in FY11, inflationary pressures have strengthened and the external position has weakened. Rising energy and food subsidies are placing a strain on the budget, but higher-than-anticipated revenues and lower-than-budgeted Annual Development Program expenditures leave sufficient fiscal space for the government to react to these pressures. Progress on reforms is mixed, with advances made on Value Added Tax reforms, efforts to tighten liquidity and setting up a framework for public-private partnership projects. Developments on telecommunication policy, the Anticorruption Commission, and policy responses to stock market volatility are a cause for concern. The growth outlook for FY12 remains good but there are risks that need to be contained. Short-term risks include rising food and fuel prices, deteriorating remittances, an increased reserve drawdown, a growing quasi-fiscal deficit, stock market volatility and its potential impact on the banking sector. Long-term risks include the inability to sufficiently alleviate power shortages, raise public investment, and remove bottlenecks for private investment.
- Published
- 2011
13. Responses to the financial crisis, treasury debt, and the impact on short-term money markets
- Author
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Hrung, Warren B. and Seligman, Jason S.
- Subjects
E50 ,financial crisis ,ddc:330 ,Treasury debt ,monetary policy ,repo rates ,G01 ,H60 ,money markets - Abstract
Several programs have been introduced by US fiscal and monetary authorities in response to the financial crisis. We examine the responses involving Treasury debt - the Term Securities Lending Facility (TSLF), the Supplemental Financing Program, increases in Treasury issuance, and open market operations - and their impacts on the overnight Treasury general collateral repo rate, a key money market rate. Our contribution is to consider each policy in light of the others, both to help guide policy responses to future crises and to emphasize policy interactions. Only the TSLF was designed to directly address stresses in short-term money markets by temporarily changing the supply of Treasury collateral in the marketplace. We find that the TSLF is uniquely effective relative to other policies and that, while changes in Treasury collateral do affect reporates, the impacts are not equivalent across sources of Treasury collateral.
- Published
- 2011
14. India Economic Update, June 2010
- Author
-
World Bank
- Subjects
EMERGING MARKET COUNTRIES ,TOTAL DEBT ,PRIVATE INVESTMENT ,INFLATIONARY PRESSURES ,FOREIGN EXCHANGE RESERVES ,DEPOSIT ,INFLATION ,EMERGING MARKET ,FISCAL DEFICIT ,REPO RATE ,PRICE STABILITY ,UNEMPLOYMENT ,EXPORT GROWTH ,REAL INTEREST RATE ,CONVERTIBLE BONDS ,COMPETITIVENESS ,RETURNS ,VALUATION CHANGES ,CONSUMER PRICE INDEX ,CREDIT GROWTH ,BONDS ,PER CAPITA INCOME ,DEBT RATIOS ,PUBLIC FINANCES ,GOVERNMENT BUDGET ,WHOLESALE PRICES ,TRANSPARENCY ,REAL EXCHANGE RATE ,EMERGING MARKETS ,PRICE INCREASES ,REPO ,PENSIONS ,EMERGING ECONOMIES ,DEPOSITS ,INVESTMENTS IN EQUITIES ,INTERNATIONAL FINANCE ,EXCESS DEMAND ,GLOBAL ECONOMY ,FIXED INCOME ,BASIS POINTS ,BANK INTEREST RATES ,ELASTICITY ,MONETARY POLICY ,INDUSTRIALIZATION ,LIQUIDITY ,INTEREST RATES ,PUBLIC DEBT ,PUBLIC SECTOR BANKS ,ARREARS ,INTEREST PAYMENTS ,PORTFOLIO DIVERSIFICATION ,DOMESTIC CREDIT ,PER CAPITA INCOMES ,AUCTIONS ,BUDGET DEFICIT ,CAPITAL MARKET LIBERALIZATION ,FIXED CAPITAL ,PORTFOLIO INVESTMENT ,PRODUCTIVITY GROWTH ,CONSUMERS ,MARKET PRICES ,FULL EMPLOYMENT ,ECONOMIC INTEGRATION ,GDP ,PORTFOLIO FLOWS ,INFLATIONARY PRESSURE ,INTERNATIONAL FINANCIAL CRISES ,DEPOSIT ACCOUNT ,PORTFOLIO ,NATIONAL SAVINGS ,GOVERNMENT REVENUES ,INCOME TAX ,EXPORTS ,WHOLESALE PRICE INDEX ,MARKET SIZE ,FIXED INCOME SECURITIES ,FINANCIAL CRISES ,FINANCIAL SYSTEM ,FISCAL POLICY ,EXCHANGE RATE ,FINANCIAL INSTITUTIONS ,GOVERNMENT ACCOUNTING SYSTEM ,DEBT RELIEF ,CURRENCY ,ECONOMIC POLICIES ,RURAL COOPERATIVE BANKS ,ECONOMIC SURVEYS ,PREPAYMENT ,INFLATION RATES ,CAPITAL ACCOUNT ,FOREIGN INVESTMENTS ,FOREIGN EXCHANGE MARKET ,DIRECT INVESTMENT ,EQUITY MARKET ,EXTERNAL BORROWING ,CONFIDENCE INDEX ,DEBT CRISIS ,COMMODITY PRICES ,BANK CREDIT ,DEVELOPING COUNTRIES ,MATURITY ,IMPLICIT SUBSIDIES ,REAL GDP ,MICROFINANCE ,CENTRAL BANKS ,EMERGING MARKET ECONOMIES ,DEVELOPMENT BANK ,FOREIGN INVESTMENT ,LOW INTEREST RATES ,TRADING ,CASH RESERVE RATIO ,CAPITAL FORMATION ,PROFIT MARGIN ,ECONOMIES OF SCALE ,CASH TRANSFER ,DEPOSITORS ,CASH RESERVE ,INTERNATIONAL CAPITAL ,TRANSACTION ,ECONOMIC PERFORMANCE ,CAPITAL FLOWS ,VALUATION ,MATURITY STRUCTURE ,TAX ,FOREIGN INVESTORS ,BANKING SYSTEM ,STOCK MARKET ,DEVELOPING COUNTRY ,RURAL BANKS ,GOVERNMENT DEBT ,FINANCIAL ASSETS ,BRANCH NETWORK ,INTERNATIONAL SETTLEMENTS ,OPEN MARKET ,STOCKS ,DOMESTIC MARKET ,EXCESS LIQUIDITY ,RISK AVERSION ,INFRASTRUCTURE INVESTMENT ,INVESTING ,INVESTMENT FLOWS ,FINANCIAL CRISIS ,INFLATION RATE ,BANK BRANCH ,GOVERNMENT BONDS ,PRODUCTION COSTS ,RESERVES ,CAPACITY CONSTRAINTS ,TAX COLLECTION ,DEBT CRISES ,CONSUMPTION SMOOTHING ,COMPENSATION FUND ,INVENTORIES ,GOVERNMENT BANK ,CONSUMER DURABLES ,PORTFOLIO INVESTMENTS ,INTERNATIONAL MARKETS ,WAGES ,DEVELOPMENT FINANCE ,EXTERNAL DEBT ,SHORT-TERM CAPITAL ,DEBT INSTRUMENTS ,REAL INTEREST ,PROVISION OF CREDIT ,COMMODITY PRICE ,EXCISE TAXES ,RESERVE BANK ,FINANCIAL MANAGEMENT ,RETURN ,AGRICULTURE ,NATIONAL BANK ,CAPITAL OUTFLOWS ,MACROECONOMIC POLICIES ,M3 ,CAPITAL MARKET ,FISCAL DISCIPLINE ,END USE ,CREDIBILITY ,MACROECONOMIC MANAGEMENT ,DEFICITS ,MONEY SUPPLY ,FOREIGN EXCHANGE ,ACCOUNTING ,CAPITAL GROWTH ,GLOBAL TRADE ,AGGREGATE DEMAND ,LEVEL OF DEBT ,REAL INTEREST RATES ,GOVERNMENT FINANCES ,OIL PRICES ,RESERVE ,FINANCIAL STABILITY ,HUMAN CAPITAL ,CAPITAL ACCOUNT LIBERALIZATION ,GOVERNMENT EXPENDITURE ,HOLDINGS ,MARKET PRICE ,MICROFINANCE INSTITUTIONS ,ADVERSE CONSEQUENCES ,GOVERNMENT SPENDING ,AGRICULTURAL OUTPUT ,EXPENDITURES ,GROWTH RATE ,EXTERNAL COMMERCIAL BORROWING ,REPO RATES ,INFLATIONARY EXPECTATIONS ,FISCAL POLICIES ,OIL PRICE ,TRADE CREDITS ,GOVERNMENT DEFICIT ,CONFIDENCE INDICES ,STATISTICAL ANALYSIS ,HOUSEHOLD SAVINGS ,HOME MARKET ,NATURAL RESOURCES ,INVESTMENT PORTFOLIO ,CAPITAL INFLOWS ,CONSUMER GOODS ,CURRENT ACCOUNT DEFICIT ,FOREIGN CURRENCY ,EXPENDITURE ,BUYBACKS - Abstract
India's economic performance in FY2009/10 shows that the recovery from the slowdown during the global financial crisis is well underway. India's Gross domestic Product (GDP) growth in FY2009/10 has beaten expectations by reaching 7.4 percent compared with 6.7 percent in the previous year. In particular, agricultural sector growth was better than feared with a slightly positive growth rate despite the worst monsoon shortfall in three decades. Strong growth in the fourth quarter pushed annual GDP growth to 7.4 percent in 2009-10. Fourth quarter growth reached 8.6 percent (y-o-y), the highest quarterly growth rate since the end of FY2007/08. The industrial sector's robust recovery beat expectations. Growth in the last quarter of fiscal year FY2009/10 was an unexpectedly high 13.3 percent resulting in over 12 percent growth in the second half of year, nearly double the 6 percent growth witnessed in the first half. Higher inflation mars the bright picture, but there are clear indications of moderation. Inflation as measured by the wholesale price index (WPI) averaged 10 percent during February-May 2010. India's recovery after the slowdown seems well underway. Growth is projected to climb to 8-9 percent in the next two years. These growth rates are achievable without a renewed build-up of inflationary pressure as long as agricultural growth returns to trend, infrastructure constraints are alleviated, and international prices remain stable. Over the next year, sources of growth will shift from fiscal stimulus to manufacturing and, possibly a recovering agriculture.
- Published
- 2010
15. Repo Markets : Background Note
- Author
-
World Bank
- Subjects
REPO TRANSACTION ,RETAIL INVESTORS ,TAX PROVISIONS ,RESERVE REQUIREMENTS ,EMERGING MARKET COUNTRIES ,INVESTMENT ,GLOBAL MARKET ,BOND DEFAULTS ,SALE OF SECURITIES ,DEPOSIT ,COLLATERAL RISK ,LIQUIDATION ,EMERGING MARKET ,MONEY MARKETS ,SECURITIES DEALER ,EQUITIES ,MARKET PRACTICES ,REPO RATE ,FEDERAL RESERVE ,SECONDARY MARKET LIQUIDITY ,LEGAL TRADITIONS ,STOCK ,REPO AGREEMENTS ,INVESTORS ,COLLATERAL ,COUPONS ,MARK-TO-MARKET ,BONDS ,TRANSACTIONS ,MARKET ENVIRONMENT ,RISK FACTORS ,CREDIT LINES ,DEBT MANAGEMENT AGENCY ,BROKER ,REPO TRANSACTIONS ,INTERESTS ,TRANSPARENCY ,EMERGING MARKETS ,REPO ,FINANCIAL MARKETS ,STATUTORY LAW ,INSTITUTIONAL INVESTORS ,HOLDING ,BORROWERS ,LEGAL TRANSACTIONS ,DEPOSITS ,USE OF REPO ,MARKETS ,CREDITORS ,BID ,PROPERTY RIGHTS ,DOMESTIC MARKETS ,FIXED INCOME ,SWAPS ,SETTLEMENT SERVICES ,OVERNIGHT REPOS ,SWAP ,MONETARY POLICY ,LIQUIDITY ,INTEREST RATES ,CREDIT RISK ,CUSTODY ARRANGEMENTS ,CASH MANAGEMENT ,MARKET ,PROPERTY ,FIXED INCOME MARKETS ,CENTRAL DEPOSITORY ,SECURITIES EXCHANGE ,LOCAL MARKET ,LIQUIDITY RISKS ,USE OF REPOS ,EFFICIENT MARKET ,MARKET PRICES ,COLLATERALIZATION ,DEPOSITORY INSTITUTION ,MUTUAL FUND ,MARKET COUNTRIES ,PORTFOLIO ,CREDIT RISK EXPOSURES ,BANKRUPTCY ,LEGAL SYSTEM ,LENDER ,SECURITY ,MARKET PARTICIPANTS ,DERIVATIVES ,CAPITAL MARKETS ,REPOS ,CREDITWORTHINESS ,SECURITIES MARKETS ,CONTRACT LAW ,RISK EXPOSURES ,SECONDARY MARKET ,MARKET PARTICIPANT ,LIABILITY ,GOOD ,REPO AGREEMENT ,BOND MARKET ,CURRENCY ,BOND ,GOVERNMENT SECURITIES ,ASSET MANAGERS ,EQUITY MARKET ,BANKRUPTCY COURT ,LOAN ,MARKET PLAYERS ,MUTUAL FUNDS ,REINVESTMENT ,FINANCIAL DEVELOPMENT ,SECURITIES ,MATURITY ,FUTURE ,LIQUID ASSET ,BUY BACK ,LIABILITY MANAGEMENT ,CENTRAL BANKS ,CONTRACTS ,INVESTOR ,MARKET INFRASTRUCTURE ,COUPON PAYMENT ,TRADING ,GOVERNMENT DEBT MARKET ,LEGAL ENVIRONMENT ,T-BILL ,LIQUIDITY RISK ,GOVERNMENT BOND MARKET ,CENTRAL DEPOSITORIES ,LOCAL CURRENCY ,SECONDARY MARKET ACTIVITY ,GOVERNMENT DEBT MARKETS ,RISK EXPOSURE ,TRANSACTION ,GOVERNMENT PAPER ,VALUATION ,TAX ,INVENTORY ,GOVERNMENT DEBT ,CASH BALANCES ,CUSTODY ,SOVEREIGN ISSUERS ,DEBT INSTRUMENT ,OPEN MARKET ,MATURITIES ,CREDITOR ,DOMESTIC MARKET ,SECURITIES HOLDINGS ,LENDING ,BANK PAYMENT ,INSTRUMENT ,BANK INVESTORS ,MARKET PRACTITIONERS ,FIXED INCOME MARKET ,SECURITY INTEREST ,DEBT MARKET ,GOVERNMENT BONDS ,PLEDGES ,MARKET LIQUIDITY ,LOANS ,DIRTY PRICE ,SETTLEMENT ,RISK MANAGEMENT ,CHECK ,FACE AMOUNT ,PAYMENT SYSTEM ,BOOK-ENTRY ,EXCHANGES ,INVENTORIES ,BORROWER ,PRIMARY DEALERS ,MARKET STRUCTURE ,FINANCE ,DEBT MARKETS ,INTERNATIONAL MARKETS ,INTERNATIONAL BOND ,STOCK EXCHANGE ,COMMON LAW ,MARKET VALUE ,DEBT INSTRUMENTS ,DEFAULTS ,ACCEPTABLE COLLATERAL ,T-BILLS ,INSTRUMENTS ,INTEREST RATE RISK ,DEBT ,INDIVIDUAL CREDITORS ,CREDIT LINE ,BOND MARKETS ,MARKET TRANSPARENCY ,SETTLEMENT SYSTEM ,BANKRUPTCY PROCEDURES ,TREASURIES ,CAPITAL ADEQUACY ,CENTRAL BANK ,RETURN ,CLEAN PRICE ,MARKET DISCIPLINE ,COUPON ,NATIONAL BANK ,JUDICIAL SALE ,REPO MARKET ,PRIMARY MARKET ,BANKRUPTCY COURTS ,CAPITAL MARKET ,CDS ,REINVESTMENT RATE ,RETAIL INVESTOR ,TREASURY SECURITIES ,COUPON PAYMENTS ,EXCHANGE ,ACCOUNTING ,PORTFOLIOS ,DEPOSIT ACCOUNTS ,VALUATIONS ,MARKET DEVELOPMENT ,DEBT MARKET DEVELOPMENT ,LOCAL MARKETS ,ARBITRAGE ,LOAN MARKET ,RESERVE ,PRIVATE INVESTORS ,TURNOVER ,HOLDINGS ,EQUITY ,TREASURY ,RISK CONTROL ,GOVERNMENT BOND ,MARKET CONDITIONS ,MARKET PRICE ,PRICE VOLATILITY ,DEFAULT ,DEBT MANAGEMENT ,MONEY MARKET ,SECURITY INTERESTS ,REPO MARKETS ,REPO RATES ,CONTRACT ,MARKET PRACTICE ,MARKET RISK ,INTEREST ,FINANCIAL COLLATERAL ,LEGAL FRAMEWORK ,CASH FLOWS ,CIVIL CODE ,OVERNIGHT REPO ,INTERNATIONAL BOND MARKET ,CIVIL LAW ,SHARE ,INTEREST RATE ,FOREIGN CURRENCY ,BANKRUPTCY LAW ,YIELD CURVE - Abstract
Repo markets are an essential component of liquid Government debt markets, acting as a transmission belt between money and debt markets, as well as serving to conduct key functions for the efficient operation of debt markets. These include, among others, credit risk management, funding debt portfolios, playing the yield curve, and covering short positions and settlement fails. The hybrid nature of a repo between a collateralized loan and a full transfer of ownership makes it a very versatile instrument for a broad range of market participants with very different business models. However, this is at the same time the reason for its complexity. This note addresses the legal, structural, accounting, tax, regulatory and infrastructure factors that are decisive for repo market development. The legal and infrastructure factors that underpin repo markets functionality are evolving ones and may be different depending on the country. The perspective adopted in this note intends to provide a balanced account of both the conceptual issues in each topic and relevant country cases, with the objective of providing policy makers with analytical tools to address their country specific context.
- Published
- 2010
16. Is China’s Central Bank Losing Its Monetary-Policy Mojo?
- Author
-
Hong, Shen
- Subjects
- *
BANKING industry , *MONETARY policy , *LIQUIDITY (Economics) - Published
- 2017
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