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Started by : Rohit Khanna, Project Leader/Managing Consultant, Accenture   09 30 2008 18:37:47 +0000
Activity:  24 views;  last activity : 09 10 2011 11:53:48 +0000

 
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1 2 3 4
1 yashpal.lather
2 Interest rates
3 It's too early to consider lowering the rates
4 Repo rate cut is best relegated to March 09

yashpal.lather

idea posted by Yashpal lather M.E/M.Tech/MS student, GJU,S&T,Hissar
to circulate money its right time for this n to overcome the inflation
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Interest rates

idea posted by AMISH Admin/Facilities Manager, VKVC
I believe with the current recessionary trend in the world, but given the stimulus that Obama has announced to the job scenario, it should be enough to bring in fresh hopes and pull the world economies out of the trend. And this will require more capital to drive economy out of the rut through increased production and consumption. Therefore the interest cut should help in loosening the purse strings of the middle class and propogate a change.
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It's too early to consider lowering the rates

idea posted by Rohit Khanna Project Leader/Managing Consultant, Accenture

The financial meltdown in the US has altered perceptions on issues around the globe. Growth has now become the most important policy concern.However inflation in the country is not yet become pervasive. It is concentrated in a few products with two-thirds of inflation coming from just six items. While it is true that the full effects of successive tightening of monetary policy is yet to work itself out, demand pressure in the economy is expected to heighten due to the looming fiscal laxness. The combined fiscal deficit for the centre and states is expected to rise to a very high 9-10% of GDP in this year against the budget estimate of less than 5%.

Taking all these in to account, it is too early to consider a lowering of interest rates.

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Repo rate cut is best relegated to March 09

idea posted by Rohit Khanna Project Leader/Managing Consultant, Accenture

Keeping the repo rate and the cash reserve ratio unchanged in the 24th October 08 monetary policy review is, in our view, the appropriate policy response. For one, inflation remains in double digits in the backdrop of a sharp depreciation in the rupee exchange rate in a year when fiscal policy has been rather expansionary.

As of now, tight liquidity conditions are prevalent as the RBI intervenes to stem rupee depreciation; going forward, liquidity could conceivably be eased by a phased rollback of the cash reserve ratio and a cut in the statutory liquidity ratio. This would be consistent with our expectation that money supply, currently growing at an above indicative 21 % YoY, is likely to decelerate with an unabated reversal of capital flows.

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Mr. Karthik......please send them a private message than posting it on toostep directly which is a personal message which you have asked to the concerned person.
This totally looks like a debate..but why have you posted it as an Idea contest Ms. Anuradha.....It would have done great if you had created this as a debate than Idea contest...as there is nothing to give Ideas under this post..........
Dear Prodosh...I hope you wanted to put your comment in an Idea contest stated same, but for some reason you have created this debate unknowingly....so plz put your comment in that Idea contest.
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