We are truly living in an age where one can no more say such economic events are impossible. As the several “Be positive” speakers show Impossible says I ‘m Possible. So it is like all the macro events once called as impossible are shouting Hey mate..I am Possible too! Taleb’s black swans are increasingly becoming white!!
Archive for October 3rd, 2013
Forget US shutdown, India might be on the verge of a shutdown..
October 3, 2013RBI’s Marginal Standing facility — Basics and Some history
October 3, 2013RBI’s Marginal Standing facility or MSF became a point of attention thanks to RBI’s policy measures in Jul-13 to shore the Rupee (15-Jul-13 and 23-Jul-13). RBI basically did not touch the main policy rate – Repo and hiked MSF rate by 200 bps to 10.25%. Traditionally, MSF has been higher than Repo by 100 bps and the difference then was 300 bps. Then again on 20-Sep-13, it lowered the MSF rate by 75 bps to 9.5% making it 200 bps above Repo (as Repo was hiked to 7.5%).
I have been following some reports and articles on MSF basics, changes and so on. But not much clarity. So decided to try and make things a little simpler:
Mostly Economics 
