| Your comment on the article ''RBI governor Rajan surprises everyone yet again, leaves key rates unchanged'' is now displayed on timesofindia.com Dated 18/12/2013 at 12:55 pm. | |
| ''It's a kind of maintaining status quo in the present environment of pre-election period. I think Mr.Raghu Raman wants to observe the impact of election results before doing anything. But it may provide large funds available for political parties as more funds be available in the hands of public or market at prevailing interest rates. Anyway, let us watch what happens.'' | |
| Thanks for sharing your thoughts. | |
| Regards, | |
| Team TOI |
Day-to-day issues and happenings as seen through my perceptions
Showing posts with label CRR. Show all posts
Showing posts with label CRR. Show all posts
Thursday, 19 December 2013
A Comment on RBI leaving key rates unchanged
A Comment on RBI keeping Rates unchanged despite high Inflation
My comment on an article "Why RBI kept rates unchanged despite high inflation" published in Economic Times dated 18/12/2013 at 1:10 pm.
"He knows that it is a kind of taking risk, but wants to read more.
He is looking for data regarding consumer behaviour on a more lengthy period keeping the rates unchanged for the time being.
He wants the mechanism to adjust itself and settle at some equitable point before doing anything."
"He knows that it is a kind of taking risk, but wants to read more.
He is looking for data regarding consumer behaviour on a more lengthy period keeping the rates unchanged for the time being.
He wants the mechanism to adjust itself and settle at some equitable point before doing anything."
A Comment on RBI keeping repo rate Unchanged
My Comment on an article "RBI keeps Repo rate unchanged at 7.75%" published in Economic Times dated 18/12/2013 at 1:00 pm.
"May be prudent from his point of view or perception.
The RBI Governor wants to take some time to analyse things more clearly and so made no changes at present.
Let us watch what happens."
Monday, 16 December 2013
A Comment on Cash Reserve Ratio and Inflation control
My reply to a comment by one reader on my comment regarding Cash Reserve Ratio with relation to inflation control published on Economic Times.com dated 16/12/2013 at 9:30 pm.
"You must be aware that CRR is the reserve required to be kept by banks with RBI. So when the CRR is increased, banks require to keep more money with RBI. Thereby banks are left with lesser funds to lend to borrowers. When borrowers get less money from banks, they do not have enough money to spend. Ultimately, demand will be less as compared to same quantity of supplies. So inflation gets decreased. I think you must be clear now."
"You must be aware that CRR is the reserve required to be kept by banks with RBI. So when the CRR is increased, banks require to keep more money with RBI. Thereby banks are left with lesser funds to lend to borrowers. When borrowers get less money from banks, they do not have enough money to spend. Ultimately, demand will be less as compared to same quantity of supplies. So inflation gets decreased. I think you must be clear now."
A Comment on CRR and Repo rates revision by RBI
My Comment on an article titled "Raghuram Rajan meets P.Chidambaram ahead of monetary policy review" published in Economic Times dated 16/12/2013 at 4:10 pm.
"I think it is better to increase both CRR and repo rates by 50bps each this month itself to bring down available funds in market to lowest levels so that demand can decrease as against supply of goods. This can bring down the prices to some what extent."
"I think it is better to increase both CRR and repo rates by 50bps each this month itself to bring down available funds in market to lowest levels so that demand can decrease as against supply of goods. This can bring down the prices to some what extent."
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