Reserve Bank has taken a step expected, and it appears he is also of further inflationary consistent with the pressures will work ! raisen of rates which is held in petrol prices to think that is low inflation in coming days will not! That is why even further the policy rates is feared to increase! I believe in this time of the bank reserve Bank guidline, deposit and borrowing rates will not accommodate the demand of because loan is very low and high bank interest rate of the lone are very low demand is an estimate!
This time we reached in such locality area is both inflation and interest rate is higher and growth is tolerable. Reserve bank still maintained it howkish trend even in near future, because inflation is hovering around 10% level. moreover, the price of non food items also on upward steam. deviation from the current policy will be a negative impact on its effectiveness ! only if, inflation sustain conditionally at lower level, will be the only encourage reason, that RBI to deviation from his current policy. reserve bank has now indicated that demands will start lowering henceforth inflation probably will be cool down.
The one significant impact of policy rates hike is, it will effect the industrial growth and new investments negatively ! despite of often rates hike, in the previous 18 months, the inflation has not been yet controled ! and at currently, it is in to the double digit mode. increasing prices of raw material, intensify of the global uncertainity has turned the sentiments to nagative.
increasing prices of raw material, intensify of the global uncertainty has sparked the sentiments to negative even more ! due to the soft stimulus policies adoption by the developed countries, the crude and the prices of commodities has been volatile ! all these factors are supportive to maintain the atmosphere for higher interest rates. therefore, the new investment inflow is on paused mode, and it has put the indian corporate into a terrible condition ! the national economy is under the huge pressure, indeed !
it has been agreed, that this rate hike is favourable for long term sustainable growth rate ! but, this will impact negatively on supply side, and the one major indian economical part, agriculture will be effect ! a serious concern over the agriculture field in this current environment is required !
However, reserve bank has taken this rate hiking step is according to the expectation of banking sector ! RBI has various choices to prevent further inflation ! as this year, the mansoon session were better beyond expected, and harvest can be boost this time, this can be a additional to prevent the food item inflation.
the other expected to effected are, operational cost of banks, increasing interest rates on various loans, bank's profit , decreasing in loan demands, and the depositors will be increas !
a pause in next policy is now on high expectation !
Posted by
Riya Mehta
Mumbai
0 Comments:
Post a Comment