Newsmakers: Gold tumbles Rs 175 on global cues, RBI may hold rates in 2016 and more

The Reserve Bank of India is likely to keep repo rate unchanged in 2016 as CPI inflation may remain above its target of 5 per cent by March 2017, says a report by Nomura.

As disinflationary forces stabilise - oil, rural wages, negative output gap, MSP - the report expects underlying core CPI inflation to remain above RBI's 5 per cent target in March 2017.

The government is readying to impose more curbs on steel imports, including introducing a safeguard duty, after a 20 per cent import tax failed to contain losses for producers such as Steel Authority of India.

SAIL, JSW Steel and Essar Steel have complained that surging imports from Indonesia, China, Japan, Russia, Ukraine and South Korea were squeezing their market share and profit margins.

Driven down by weak cues from the global market and slack demand from jewellers, gold extended its slide for the second straight day as prices plunged Rs 175 to Rs 25,775 per 10 grams at the bullion market on Tuesday.

Silver slipped below the Rs 35,000-mark by falling Rs 575 to Rs 34,425 per kg on reduced offtake by industrial units and coin makers.

Retirement fund body EPFO is likely to increase the interest rate on PF deposits for 2015-16, from 8.75 per cent fixed for the last two financial years, during its trustees' meet on Wednesday.

According to a source, the meeting is called mainly to discuss the restructuring of Employees' Provident Fund Organisation (EPFO), but since the EPFO has worked out income projections for the current fiscal, the rate of interest can be fixed in tomorrow's meeting.

The income projections for the current fiscal suggest that the body can pay rate of interest which is slightly higher than 8.75 provided in 2013-14 and 2014-15.

The Finance Ministry, however, wants EPFO to retain the existing interest rate of 8.75 per cent for FY 2015-16.

Toyota will hike prices of its vehicles across all models in India by up to 3 per cent from January to offset rising input costs and unfavourable foreign exchange fluctuation.

The company, which is present in India through a joint venture with the Kirloskar group - Toyota Kirloskar Motor (TKM) - is, however, yet to finalise the details on the quantum of hike on individual models.

Already German luxury car makers Mercedes Benz and BMW have announced that they would increase prices of their vehicles across models by up to 2 per cent and 3 per cent, respectively, from January to offset rising input costs.