Reserve Bank of India has at last decided not to hike interest rate, which was being done since last so many Months. It has listened to the views of the Industry and has seen the statistics of GDP growth going down and IIP data showing the alarming situation of Indian Industry. We just cannot say that RBI interest rate hike strategy was wrong. Interest rate hike till now might be the reason Inflation could remain in 9%+ zone for six to seven months and did not cross 10%. . Interest rate hike has definitely impacted the GDP growth but this was expected. Inflation control and GDP growth cannot go same time. RBI has done a very good act till now and not tinkering interest rate either side (repo rate) is one of the best signal it has given to all stake holders of Indian Industry. Everyone was expecting a cut in CRR rate but it has also been not changed and maintained at 6% and SLR at 24%. RBI will observe the trend of Inflation rate for few more Months before deciding on rate cut. If Inflation rate comes down rate cut may start around April 2012. This is the best time to do fixed deposit at the present rate as more likely it will go down from here onwards. RBI is also busy controlling the Rupee depreciation. The way rupee has depreciated in the last one month or so has taken every Imputer by surprise. In the coming day RBI is expected to act more proactively to bring back smile to the face of all stake holders of Indian Economy.
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