Policy rates cut 50bp to 7% repo and 9% reverse repo

K.Haputantri

K.Haputantri

Co-Admin

Posts : 2274
Join date : 2011-12-06

hariesha wrote:Cheers! CSE will have a good run this year wiping out all losses and extending to new highs.

The bull run started from 4900 level will continue at least for another year. Good for all of us.

Agree but I must also add that the current SEC boss can't get the praise for the current run because its the work of the CB & the Finance Ministry. Similarly, former SEC bosses can't be blamed for bear run those days for the same reason because the policy rates werer kept very low during that period. Unfortunately, they were chased away by manipulators for doing their legitimate work - tightning the regulatory measures.

salt

salt

Vice President - Equity Analytics

Posts : 1345
Join date : 2011-01-31

Accordingly, the Monetary Board decided at its meeting held on 9th May 2013 to
reduce the Repurchase rate and the Reverse Repurchase rate of the Central Bank by
50 basis points, respectively, thereby placing the Repurchase Rate at 7.00 per cent and
the Reverse Repurchase Rate at 9.00 per cent. In addition, the reserve maintenance
period of commercial banks will also be increased to two weeks from one week with
effect from 1st June 2013 in order to offer greater flexibility to commercial banks in
managing their liquidity, while maintaining the Statutory Reserve Ratio at the current
level of 8 per cent.
certainly, this is more than expected! i ma delighted!

wiki

wiki

Assistant Vice President - Equity Analytics

Posts : 687
Join date : 2011-02-03

welcome the decision.. this is good for growth.

Lets join the party Very Happy

NB: Hope treasury may not cut the vehicle import tax Very Happy

Rapaport

Rapaport

Assistant Vice President - Equity Analytics

Posts : 681
Join date : 2011-02-01

Its too early to cut vehicle tax.

Govt will not want to repeat mistakes again.

Also roads are too congested and govt on a mission to cut imports from India
(Bajaj and Maruti)

Cheers!

worthiness

worthiness

Senior Vice President - Equity Analytics

Posts : 2577
Join date : 2011-04-08

CB is always under pressure from IMF & global lenders on policy decisions taken. What will be the reaction from such parties in lowering the interest rate with decreasing inflation.?

sandunj

sandunj

Senior Manager - Equity Analytics

Posts : 435
Equity Stars : 4566
Reputation : 20
Join date : 2013-03-16

At the moment Market didnt react as we expected...

traderathome

traderathome

Senior Vice President - Equity Analytics

Posts : 2485
Equity Stars : 7185
Reputation : 133
Join date : 2012-02-26
Age : 50
Location : Abu Dhabi

Thanks Visa

stockback

stockback

Senior Vice President - Equity Analytics

Posts : 2945
Equity Stars : 8958
Reputation : 61
Join date : 2012-02-19

We should get resistance at this level. then market can be strong (RSI). with good financial quarter reports market will move further. in the same time FD investors will come back to market.
then we can have party.

Bond

Bond

Manager - Equity Analytics

Posts : 274
Equity Stars : 4338
Reputation : 12
Join date : 2013-05-02

Yeah it seems nobody wants to see the impact on finance firms. A liquidity shock will kill any stock.

Slstock

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13368
Reputation : 1158
Join date : 2011-01-22

You sure this will happen. Any good finance company will have risk management. Maybe short term shock but long term more profitability.

This has happend before. In 2008 rates were high as 25%, Then it dropped to nearly 10-11%. Good ones not only survived they performed even better.

Bond wrote:Yeah it seems nobody wants to see the impact on finance firms. A liquidity shock will kill any stock.

seek

seek

Senior Manager - Equity Analytics

Posts : 558
Equity Stars : 4990
Reputation : 21
Join date : 2012-07-13

Bond wrote:Yeah it seems nobody wants to see the impact on finance firms. A liquidity shock will kill any stock.

That is why, I am away from many small scale finance companies.

Patchchasira

Patchchasira

Equity Analytic

Posts : 29
Equity Stars : 4171
Reputation : 0
Join date : 2013-01-08

Well some said the market might react positively to a rate cut this did not happen. So what is the next mirage that we have to wait for?

Jana1

Jana1

Assistant Vice President - Equity Analytics

Posts : 703
Equity Stars : 5484
Reputation : 37
Join date : 2011-06-17

Patchchasira wrote:Well some said the market might react positively to a rate cut this did not happen. So what is the next mirage that we have to wait for?

R u sure it didn't happen? I thought last few weeks uptrend was due to the expectation of policy rate cut which could have reached HNWI bit earlier. What ever the available money was pumped now new money should need to come inside from FD and gold. Mkt will react in healthy manner sooner..

Rapaport

Rapaport

Assistant Vice President - Equity Analytics

Posts : 681
Equity Stars : 5727
Reputation : 55
Join date : 2011-02-01

Well there will be a reverse every now and then and it is impending. Probably Monday or Tuesday will be a much needed pull back

Cheers!

Bond

Bond

Manager - Equity Analytics

Posts : 274
Equity Stars : 4338
Reputation : 12
Join date : 2013-05-02

slstock wrote:
You sure this will happen. Any good finance company will have risk management. Maybe short term shock but long term more profitability.

This has happend before. In 2008 rates were high as 25%, Then it dropped to nearly 10-11%. Good ones not only survived they performed even better.

Bond wrote:Yeah it seems nobody wants to see the impact on finance firms. A liquidity shock will kill any stock.

I'm pretty sure this will happen or is already happening. The previous drop you are referring to was ok since the interest rates were not capped.

The ARs will tell you the time deposit structure.

udeni

udeni

Manager - Equity Analytics

Posts : 152
Equity Stars : 4938
Reputation : 14
Join date : 2011-05-05
Location : Colombo

stockback wrote:We should get resistance at this level. then market can be strong (RSI). with good financial quarter reports market will move further. in the same time FD investors will come back to market.
then we can have party.

stockback, a prudent investor will spread the risks in various financial instruments so that she/he will have a diversified investment portfolio such as investments in stock excahange, FDs in government institutions and private financial institutions, bond market, debentures, property, gold etc. Therefore I don't think all the FD investors will rush back to the stock market withdrawing all their FDs. High risk takers will most probably embrace the stock market again.

stockmania

stockmania

Manager - Equity Analytics

Posts : 191
Equity Stars : 4765
Reputation : 3
Join date : 2011-11-22
Location : Earth, Milky Way Galaxy

Will I be able to get a personal loan at 12% interest rate ? Basketball

malanp

malanp

Senior Manager - Equity Analytics

Posts : 382
Equity Stars : 4848
Reputation : 16
Join date : 2012-03-02

if not for the rate cut, today would have been a 100 points red day..

kukumarx

kukumarx

Manager - Equity Analytics

Posts : 128
Equity Stars : 4315
Reputation : 19
Join date : 2012-12-11

stockmania wrote:Will I be able to get a personal loan at 12% interest rate ?

Commercial Bank gave me 12% for a one year FD today. They will be charging more for loans.

wiki

wiki

Assistant Vice President - Equity Analytics

Posts : 687
Equity Stars : 5697
Reputation : 41
Join date : 2011-02-03
Location : Colombo

Rapaport wrote:Its too early to cut vehicle tax.

Govt will not want to repeat mistakes again.

Also roads are too congested and govt on a mission to cut imports from India
(Bajaj and Maruti)

Cheers!

I too hope Gov may not do the same mistake. but I rather doubt they will opt for reduction of Indian vehicles

India-Sri Lankan bilateral trade has potential to more than double to $ 10 billion by 2016 if tariff and non tariff barriers are removed, said Sri Lankan High Commissioner to India Prasad Kariyawasam said at a PHD Chamber function in New Delhi

http://www.dailymirror.lk/news/29158-need-to-remove-bilateral-trade-barriers-sl-tells-india.html

Sponsored content

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Name*:
Phone number:
Email address*:
Comments*:
* - required fields	Learn

Latest topics

Policy rates cut 50bp to 7% repo and 9% reverse repo

26 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:52 am

K.Haputantri

27 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:54 am

salt

28 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:58 am

wiki

29 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 10:14 am

Rapaport

30 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 10:28 am

worthiness

31 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 10:40 am

sandunj

32 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 11:17 am

traderathome

33 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 12:57 pm

stockback

34 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 1:04 pm

Bond

35 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 1:18 pm

Slstock

36 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 1:18 pm

seek

37 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 1:27 pm

Patchchasira

38 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 1:52 pm

Jana1

39 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 2:18 pm

Rapaport

40 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 4:07 pm

Bond

41 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 4:56 pm

udeni

42 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 5:12 pm

stockmania

43 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 6:18 pm

malanp

44 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:30 pm

kukumarx

45 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo Fri May 10, 2013 9:43 pm

wiki

46 Re: Policy rates cut 50bp to 7% repo and 9% reverse repo

Sponsored content

New topics