Time to see reverse repo rate!
RBI surprises again, raises repo rate by 25bp to 8%, keeps CRR unchanged
http://timesofindia.indiatimes.com/business/india-business/RBI-surprises-again-raises-repo-rate-by-25bp-to-8-keeps-CRR-unchanged/articleshow/29481938.cms
RBI is lending money to commercial banks and now we shall see increase in interest rates from the Banks, definitely hitting the commoners.
Important question to ask–Are Banks really running out of liquid cash? If yes then are people using the paper note more than before? Is it because of inflation people have to withdraw more money than before? And hence repo rate is raised by 25 basis points.
After the scams like CWG, Coalgate, Aadarsh etc. people were expecting revival in interest rates, but in contrast repo rate is increased.
Approximately more than 50 % of Indian population is below the age of 30. Now all who are trying to settle down, on the verge of fulfilling daily needs like buying car, house will have to do their calculations again.
Am sure, RBI wants to control inflation by taking certain steps, Time will tell us!
I feel, post elections we may see reverse repo rate where Banks would lend money to RBI and may see fall in interest rates, there by benefiting Indian citizens. Can be an important step to reduce inflation!!!
Views are strictly personal.
RBI surprises again, raises repo rate by 25bp to 8%, keeps CRR unchanged
http://timesofindia.indiatimes.com/business/india-business/RBI-surprises-again-raises-repo-rate-by-25bp-to-8-keeps-CRR-unchanged/articleshow/29481938.cms
RBI is lending money to commercial banks and now we shall see increase in interest rates from the Banks, definitely hitting the commoners.
Important question to ask–Are Banks really running out of liquid cash? If yes then are people using the paper note more than before? Is it because of inflation people have to withdraw more money than before? And hence repo rate is raised by 25 basis points.
After the scams like CWG, Coalgate, Aadarsh etc. people were expecting revival in interest rates, but in contrast repo rate is increased.
Approximately more than 50 % of Indian population is below the age of 30. Now all who are trying to settle down, on the verge of fulfilling daily needs like buying car, house will have to do their calculations again.
Am sure, RBI wants to control inflation by taking certain steps, Time will tell us!
I feel, post elections we may see reverse repo rate where Banks would lend money to RBI and may see fall in interest rates, there by benefiting Indian citizens. Can be an important step to reduce inflation!!!
Views are strictly personal.
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