China raise rates. May be they are worried about inflation over there. But RBI is confident that we can handle all that money flowing into India. Since that money is going into Coal India IPO it's getting into pockets of common consumers . I get it ...
Jobless claims falls in usa story and economies around the world coming back to the feet. Inflation is showing signs of coming back . All that leads to one thought when can interest rate go up.
Interest rate is main tool in Bankers tool box RBI or US Fed ..to control economic activity. The lower interest rate powerful foot steps onto gas pedal and economy runs faster, but that leads to rising prices of commodity and other .. you know what I mean.
As per Economy.com The Reserve Bank of India (RBI) could start raising its repo and
reverse repo rates in late 2009 and early 2010 and might also opt to increase
banks' cash reserve ratio first.
This suggest that RBI is getting concerned about inflation slowly. Commodity prices are shooting up and necessary items like Food and Home again reaching out to new highs.
Time to prepare for dumping your real estate portflio ? Not sure yet.
Australia’s central bank unexpectedly
raised its benchmark from a 49-year low and
signaled further increases in coming months amid signs the
economy is strengthening.
About rahul das
State Bank of India ( SBI), which commands over 20 per cent of the
banking business in the country, announced a 0.25 per cent cut in
deposit rates across all maturities, bringing the rate of long- end (
8- 10 year) deposits down to 7.5 per cent.
Looks like SBI is trying to keep up with interest margin by lowering deposit rates. Now at 7.5% 8-10 year deposit becomes less attractive. Banks are flushed with money and their low credit off take.