Experts’ opinion – No prospects for any reduction in interest rates!!
Posted on: 29/Sep/2014 2:25:54 PM
Banking experts have declared their opinion that the Reserve Bank of India is not likely to reduce the interest with the prevailing inflation rates.
The bi-monthly issue of RBI’s Loan & Finance Policy is expected to be released on 30th September.
Though there has been a reduction in the consumer related inflation rates, it has not still reached the expected level. In this situation, the banking experts believe there is no scope for any reduction in interest rates.
The rating agency, Care Rating, has informed that with the prevalent increasing trend of inflation, there is very little chance of lower interest rates to be announced on 30th September.
Mr. Raghuram Rajan, the Governor of the Reserve Bank of India, had already hinted that there may be no reduction in interest rates a few days ago. He had expressed that the question of any reduction in the interest rates is far off in a recent meeting. He informed that he does not believe in keeping the interest rates high. In fact, he is in favour of reducing the interest rates. However, the situations conducive to such a step has not materialised so far. Only reduction in inflation will set the tone for reduction in interest rates.
