Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
Software engineers straight out of college often make six-figure salaries, not counting equity compensation.Technologyread more
Wall Street, though, is clamoring for a rate cut, with an 85% chance of a move in July and a 61% probability of three reductions by year's end.The Fedread more
A company spokesperson said the outage was the result of a "an internal technology issue" and was not security related.Retailread more
Using MIT's living wage calculator, CNBC Make It mapped out the minimum amount a single parent must earn to meet their basic needs without relying on outside help in every...Earnread more
The flattening of the yield curve is exuding a bad omen for the stock market if history is any guide.Marketsread more
Hong Kong Chief Executive Carrie Lam announced at a press conference on Saturday that a contentious bill to allow extraditions to mainland China has been put on hold.China Politicsread more
Stratolaunch, the world's largest airplane, which flew once, is up for sale, sources familiar told CNBC.Investing in Spaceread more
Transparency is key… or is it? With the first-ever non-transparent, actively managed exchange-traded fund receiving approval from the SEC, "ETF Edge" goes straight to the...ETF Edgeread more
Mired in a crisis over its best-selling 737 Max plane, Boeing could hand the spotlight over to its rival Airbus at the Paris Air Show.Airlinesread more
A new update to the Apple Watch called watchOS 6 will notify you if the environment you're in is too loud and could damage your hearing.Technologyread more
India's central bank is on track for at least one, if not more, rate cuts in the near future, J.P. Morgan Chief Emerging Markets Economist Jahangir Aziz said Friday.
The Reserve Bank of India on Thursday slashed interest rates for the third time this year.
The RBI cut its policy repo rate, or the rate at which it lends to banks, by 25 basis points (bps) from 6% to 5.75%. The central bank also changed its stance from neutral to an easing bias, otherwise known as an accommodative policy.
An accommodative policy implies that the central bank is trying to encourage spending by making it cheaper for companies and households to borrow, in a bid to foster growth in the economy.
India's central bank said in its monetary policy statement that external risks include the ongoing U.S.-China trade war as well as a slowdown in the domestic economy.
"The RBI has shown its easing bias, so whatever data that will come in, the RBI is going to look at it with those lenses," Aziz told CNBC's "Squawk Box " on Friday. "Therefore, our sense is at least one more cut — and maybe more, or more likely more."
Recent data showed a notable slowdown in growth for the January to March period. With a lower-than-expected 5.8% expansion for the quarter, India fell behind China's pace of 6.4% for the same period. At the same time, unemployment rate in the country is at a 45-year high.
J.P. Morgan is not the only one expecting more rate cuts in India.
Citi economists wrote in a note on Thursday that the RBI could deliver another rate reduction as early as August, and that the monetary policy committee members now appear to agree on the importance of stimulating growth in a benign inflation environment.
"Although the RBI changed the stance to 'accommodative,' we assess that there is room for one more 25bps rate cut in the Aug policy," they wrote, adding that rate cuts beyond that would depend on the "continuance of low inflation and low growth."
Meanwhile, ANZ Research economists predicted three more rate cuts of 25 basis points each over the next six months. "Given little room on the fiscal side we expect monetary policy to continue to do the heavy lifting to revive demand," ANZ economists wrote.
J. P. Morgan's Aziz pointed out there's a major liquidity problem in India right now — especially in the shadow banking sector.
He explained that by allowing the liquidity problem to fester in India's non-bank financial sector, the situation is increasingly turning into a solvency problem — which means it is becoming more of a matter of struggling non-banking financial companies and their ability to meet long-term debt and financial obligations.
In light of a banking crisis that slowed lending in India over the last several years, non-banking financial companies became important financiers to millions of small- and medium-sized businesses as well as individuals.
The crisis in the shadow-banking sector came to light when the Infrastructure Leasing and Financial Services, a major infrastructure financing and construction company, defaulted on its debt obligations multiple times, leading the government to intervene. Reuters reported that the company has a total debt of 910 billion rupees ($12.97 billion) and is trying to sell its assets to repay them.
More recently, the Indian unit of ratings agency S&P, cut the short-term credit rating of another non-banking financial company, Dewan Housing Finance Corp, to default. That prompted further concerns in the market.
"I think the need of the hour is to resolve the liquidity problem," Aziz said, adding that if the shadow banking sector issues turned into a solvency problem, then it could be a sizable one.
During a press conference, RBI Governor Shaktikanta Das said the central bank is "very closely monitoring" the situation in the shadow banking sector and that the RBI "will not hesitate" to take steps necessary for ensuring financial stability.