Build your professional network on facebook via our app Go to app
Asked by : nimesh marfatia, MBA/PGDM student, Europe Asia Business School
Industry : Equity Research/Analytics
Functional Area : Equities
Keywords : rbi rates
Activity: Question posted: 07 27 2009 18:16:21 +0000, 2 answers, 224 views, last activity 07 06 2010 20:18:08 +0000
 Refer 39
  Rate : 

Shd RBI cut rates or should it keep it Unchanged?

  Answer modified by     Esha Johar, Risk Analyst, Irevna  | 07 28 2009 08:15:53 +0000
[ Delete ]
[ Edit ]
Not Rated

I think the government should keep it untouched. Any upturn in the growth momentum is unlikely in view of the projected contraction in global demand during 2009. It will projected the wholesale price index based inflation at around 4 percent by next year.

Given the cost plus pricing structure, banks have been slow in reducing their lending rates citing high cost of deposits. The current deposit and lending rates are higher than in 2004-07, although the policy rates are now lower… There is room for downward adjustment in deposit and lending rates,

There are uncertainties surrounding the financial strength of banks around the world. Further, the regulatory and supervisory policies at national and international levels are under review. In view of this, it is considered advisable, for the time being, to continue with the current policy and procedures governing the presence of foreign banks in India

  Answered by     Alok Routray, PGPM 2010 Batch  | 07 27 2009 20:25:02 +0000
[ Delete ]
[ Edit ]
Not Rated

RBI should keep all the rates unchanged becoz we will face a inflationary trend at current prices in a couple of months and it will continue to March 2010. Currently the growth rate of broad money (M3) is 20% yoy which is substantial enough to cushion the inflationary trend to come.  

Leading Training Company
  • Create a confidential Career Profile and Resume/C.V. online
  • Get advice for planning their career and for marketing of experience and skills
  • Maximize awareness of and access to the best career opportunities
Viewers also viewed
The Reserve Bank of India has one thing which is bugging them these days is the Fake notes which...
79 referals 8 votes, 11796 views
Recently when Warren Buffett came to India he warned investors to be careful about which social...
1389 referals 25 arguments, 1561 views
The values what we learnt as a child in the school definetly  work in the entire life in any...
0 referals 7 arguments, 429 views
Unanswered Questions (75)
More From Author
I believe the economy is improving. The Q1 results were decent. In Q2 result the YOY result will be looking good. Last year the fall was there during this time. Also govt has started allocation of Funds to projects, hence the road looks good. Investor...
Shd RBI Cut Rates or Keep it Unchanged?
Will World Markets be able to sustain this short Bull Rally?