Between May 22 and June 4, a lot has changed. Meanwhile, the domestic stock markets have set a new record of height. US President Donald Trump has raised the issue of import from Mexico strictly The growth rate of India's economy has come down to a minimum of five years. On the other hand, once again Prime Minister Narendra Modi received a grand mandate.
The Governor of the Reserve Bank will be the leader of the Das Monetary Policy Committee (MPC). The results of the meeting will be on Thursday. The market expects central bank interest rates to decrease in interest rates to boost growth. Just a month's time left in the general budget. But the worsening health of the economy will get the first dose from the Reserve Bank's meeting. This meeting will decide which direction the market will go towards.
According to economists, analysts and experts, MPC can cut 25 basis points in repo rate. This is the same rate at which the Reserve Bank lends to other banks. 25 basis points mean 0.25% reduction.
But there are many doubts in the minds of finance experts. The governor has talked about adopting new ways. Because of this, many veterans believe that interest rates can be cut by 35 basis points. Some experts are also lobbying for the decline of 50 basis points.
Das said, "If the need arises, the central bank can cut 35 basis points in interest rates, it is possible only if 25 basis points decrease and the 50 basis points reduction is going to be high, this policy is quite Can prove to be effective. "
However, Prachi Mishra of Goldman Sachs believes that the repo rate should be maintained at 6%. According to the agreement of the government and the Reserve Bank, the main purpose of MPC is to maintain the consistency of prices keeping in mind the growth target.
The rate of inflation has also come down significantly. It is below its target of 4 percent. The Reserve Bank believes that in the second half of the financial year 2019-20, it can remain 3.5 to 3.8 per cent. It means that the real interest rate will be 3.2 percent.
If inflation is higher than the interest rate, then those who save are harmed. Similarly, if interest rates are high above the inflation rate, then the ability to borrow is affected. In such a situation, investment is essential to stress the economy.
There is also a truth that due to reasons like rising crude oil prices, rising prices of food products, inflation may increase. These issues are out of government control. But at least the slaves have indicated to try something new.
All the demands of the industry can not be accepted, because supply of all is unthinkable. But this problem is a decade old, no matter what the policy has been adopted. Liquidity is the correct answer in comparison to the interest rates. If debt distribution can accelerate from zero interest rates, then the former Fed Chairman Ben Bernanke will remain with the same policy. They do not buy Bond. Now the yield is at 7% and in the second half there is more than 320 basis more than the inflation projections. This difference is quite big. US President Donald Trump said candidly about the mistake of Fed Chief Jerome Powell's economic policy, after which Powell had to take a U-turn. But will Narendra Modi do this with his central bank like this?
The Governor of the Reserve Bank will be the leader of the Das Monetary Policy Committee (MPC). The results of the meeting will be on Thursday. The market expects central bank interest rates to decrease in interest rates to boost growth. Just a month's time left in the general budget. But the worsening health of the economy will get the first dose from the Reserve Bank's meeting. This meeting will decide which direction the market will go towards.
According to economists, analysts and experts, MPC can cut 25 basis points in repo rate. This is the same rate at which the Reserve Bank lends to other banks. 25 basis points mean 0.25% reduction.
But there are many doubts in the minds of finance experts. The governor has talked about adopting new ways. Because of this, many veterans believe that interest rates can be cut by 35 basis points. Some experts are also lobbying for the decline of 50 basis points.
Das said, "If the need arises, the central bank can cut 35 basis points in interest rates, it is possible only if 25 basis points decrease and the 50 basis points reduction is going to be high, this policy is quite Can prove to be effective. "
However, Prachi Mishra of Goldman Sachs believes that the repo rate should be maintained at 6%. According to the agreement of the government and the Reserve Bank, the main purpose of MPC is to maintain the consistency of prices keeping in mind the growth target.
The rate of inflation has also come down significantly. It is below its target of 4 percent. The Reserve Bank believes that in the second half of the financial year 2019-20, it can remain 3.5 to 3.8 per cent. It means that the real interest rate will be 3.2 percent.
If inflation is higher than the interest rate, then those who save are harmed. Similarly, if interest rates are high above the inflation rate, then the ability to borrow is affected. In such a situation, investment is essential to stress the economy.
There is also a truth that due to reasons like rising crude oil prices, rising prices of food products, inflation may increase. These issues are out of government control. But at least the slaves have indicated to try something new.
All the demands of the industry can not be accepted, because supply of all is unthinkable. But this problem is a decade old, no matter what the policy has been adopted. Liquidity is the correct answer in comparison to the interest rates. If debt distribution can accelerate from zero interest rates, then the former Fed Chairman Ben Bernanke will remain with the same policy. They do not buy Bond. Now the yield is at 7% and in the second half there is more than 320 basis more than the inflation projections. This difference is quite big. US President Donald Trump said candidly about the mistake of Fed Chief Jerome Powell's economic policy, after which Powell had to take a U-turn. But will Narendra Modi do this with his central bank like this?
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