The Steel Authority of India (SAIL) had to raise its interest rates by 12 bps as compared to its earlier rates, as it mopped up Rs 420 crore at 8.35% with a three-year maturity, says a report.
Borrowing costs for corporates have risen despite the Reserve Bank of India giving a rate cut thrice thrice this year. The Steel Authority of India (SAIL) had to raise its interest rates by 12 bps as compared to its earlier rates, as it mopped up Rs 420 crore at 8.35% with a three-year maturity, says an ET report.
Power Grid Corporation will reportedly hit the market with bonds this week along with Power Finance Corporation and Rural Electrification Corporation that are regular issuers. Reports indicate that they too may have to pay higher interest rates to raise funds.
In line with the broader consensus, RBI decided to trim repo rate by 25 basis points and kept the CRR unchanged at 4%. However, the wording of monetary policy remains cautious and indicates a long pause before the next move on the interest rates. The policy statement mentions that there is an element of uncertainty to the inflation outlook, wherein the probability of poor monsoon and volatility in oil prices pose as a serious risk. Governor Raghuram Rajan has added that the interest rate move in June is front loaded, which otherwise would had occurred in August. This implies that next policy meeting in August will yield nothing much on the interest rates front.
Power Grid Corporation will reportedly hit the market with bonds this week along with Power Finance Corporation and Rural Electrification Corporation that are regular issuers. Reports indicate that they too may have to pay higher interest rates to raise funds.
In line with the broader consensus, RBI decided to trim repo rate by 25 basis points and kept the CRR unchanged at 4%. However, the wording of monetary policy remains cautious and indicates a long pause before the next move on the interest rates. The policy statement mentions that there is an element of uncertainty to the inflation outlook, wherein the probability of poor monsoon and volatility in oil prices pose as a serious risk. Governor Raghuram Rajan has added that the interest rate move in June is front loaded, which otherwise would had occurred in August. This implies that next policy meeting in August will yield nothing much on the interest rates front.
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