|
Interest Rates |
|
|
|
|
Have Interest rates peaked out? |
|
|
Re: Interest Rates |
|
|
|
|
A hard core pessimist like me believes the worst is yet to come. |
|
|
Re: Interest Rates |
|
|
|
|
Rajiv
|
| 05 September 2008, 16:25:05 |
|
I think a lot will depend on inflation trends going forward. My guess is that the same should be largely stable to downward and thus the rates should be relatively stable for the next few months. We could expect a fall in the next financial year |
|
|
Re: Interest Rates |
|
|
|
|
|
Amal
|
| 25 October 2008, 23:11:45 |
|
Have the interest rates peaked out
Dear friend
You should be looking at the interest rate movement with a lot of other factors that would be impacted with the movement. Some of the factors that get impacted by the rate movement are as follows
1) By stiffening the rate the inflationary pressures are kind reined or reverse would be the case if the recessionary pressures are to be eased off, more money is made available at cheaper rates. I personally see it in a small thumb rule and i.e. the bank rates more or less will be maintained on a couple of percentage points more than the inflation rate. This makes sense because the banks will somehow have to incentivize the depositors and pay them the rate which will make them keep money with them. The concept is simple if I want to spend my money some time later I need to be compensated for the future purchasing power which is impacted by inflation. Thus the borrowing will impact the PLR also.
2) Some time to make more money come into the local financial institution the rates are maintained in such a manner the investor from a foreign destination finds it attractive to invest here in India, thus to attract more of such investors the RBI may maintain higher rates .
3) But certain sectors can have some concessions but it could be an exception and not a rule
So look for rates which would be looking to settle around 8-10% once the inflations come down from the existing 11% + rates. |
|
|
|
|
|
|
