RBI to discuss issuance of sovereign bonds with govt

New Delhi, July 8

RBI Governor Shaktikanta Das today said the central bank will discuss with the government the issuance of overseas sovereign bonds, an instrument that will help reduce dependence on the domestic market for bridging fiscal deficit.

The RBI issues bonds on behalf of the government as part of the resource mobilisation exercise to fund gap between revenue and expenditure. Expressing satisfaction over the government’s move to slash fiscal deficit target, Das said it will help improve investment by the private sector.

After the customary post-Budget meeting with Finance Minister Nirmala Sitharaman, he said, “The government has made a Budget announcement and we will interact with the government. I am sure the government will have a discussion with the RBI. Whatever we need to discuss with the government, will be discussed internally.” Finance Minister Nirmala Sitharaman in Budget 2019-20 announced that the government will start raising a part of its gross borrowing programme from external markets in foreign currencies. — PTI

Hopes faster transmission of rate cut by banks

• After delivering three back-to-back rate cuts, the RBI on Monday said it expects a quicker transmission of the interest rate cuts by banks to consumers by way of cheaper home, auto and personal loans
• During this year, the RBI reduced the key policy rate thrice with an aggregate reduction of 0.75 percentage point in the repo rate, the rate at which RBI lends to banks