Are there prospects of reduction in rates of interest on 2nd June?
Posted on: 06/May/2015 5:07:37 PM
Leading Brokerage Companies have expressed their view that there might be an announcement about reduction in the rate of interest in the latest notification of Reserve Bank of India scheduled on 2nd June on the loan and finance policies.
HSBC has explained that there is scope for a reduction in interest rates as the prices of essential food items have come down.
Bank of America Meryl Lynch has opined that there might be a reduction of interest rates by 0.25% on 2nd June RBI report and there may not be much scope for any further reduction on interest rates.
There are prospects for American Central Bank to increase interest rates after September.
As there are strong expectations that there might be 0.50% reduction in interest rates by early next year,
Bank of America Meryl Lynch has indicated that Reserve Bank of India is unlikely to announce any more reduction in interest rates.
The retail inflation in March has reduced by 5.17% unprecedented in the last 3 months.
This has led to the various ‘guess-timates’ about reduction in interest rates.
HSBC has informed that though retail inflation is currently down, there are scopes for increase in price levels. When there is an increase in price of commodities in international market, this will be reflected in India leading to price rise.
