RBI may go for 5o basis point hike

Subarao in 2010 had increased Repo rate five times  25 basis point each while this time it seems a speculative wave may spread negative impact in the market if the basis point hike goes beyond 25 basis points. No one knows what will happen when RBI will announce the monetary policy. RBI’s hike is a move to control inflation. Prices of food commodity have gone so high that food inflation has almost reached 15% while there are still uncertainty about the inflationary control. Industrial goods have gone high in price as the input costs are on a rise. This critically impact the profit margins and discourage consumer purchase while on another side the whole country  wants to know why we are unable to bring back the massive amount of black money stored in Swiss banks.  If India will succeed in bringing the massive 2lack crore  we will not be called a poor country.

By : | Category : Business and Economy| Date : November 10,2011

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