Morgan Stanley - estimates interest rates to be down by 0.5 percent
Posted on: 22/Jul/2016 9:36:08 AM
Morgan Stanley, the leading financial consultancy company, has estimated that the inflation would come down to 4.5 percent by October next year and the interest rates for lending would be reduced by 0.5 percent.
Attributing the commodity price reduction, salary, and financial controls, and others as main reasons, the inflation would be less. So, there are good prospects of interest rates being cut by 0.5 percent before March.
It must be noted that when the finance policies were released during last June, RBI Governor Raghuram Rajan had announced that if the monsoon rains are good and the inflation is under control, the interest will by cut by the end of the year.
