Prospects of further reduction in Interest ratio
Posted on: 16/Apr/2016 3:18:17 PM
The Governor of the reserve Bank of India, Mr. Raghuram Rajan, informed that if the trend of fall in inflation continues, there are bright prospects of reduction in the interest ratio of the loans advanced by RBI
Mr. Raghuram Rajan was participating in the meeting conducted by the World Bank & IMF (International Monetary Fund) in Washington.
He informed that there has been a reduction in inflation in India. If this trend continues, there are bright prospects for a further reduction in the interest ratio for the banks. These changes happen depending on the prevailing inflation.
There are bright prospects of a good monsoon rainfalls this year. Most of us are not aware of the vital link between a good monsoon seasonal rainfall and the prices/inflation.In case the monsoon fails for the 3rd consecutive season, it may lead to price rise of essential commodities.
It is remarkable that the retail inflation in the country has reduced to 4.83 percent. As per the statistics furnished by the central government, this is the lowest recorded inflation in the last 6 months.
The Deputy Director of IMF for Asia & Pacific countries, Mr. Markus Rodlauer, informed that though India has been registering rapid Economic Growth in the International Arena, this will not have much impact outside South Aisa.
The RBI governor also mentioned it is possible to feel the impact of India`s growth on the other neighbouring countries.
