The decision to reduce the Policy Repo Rate by the RBI by 50 bps speaks volumes of the tremors of fear in the monetary policy makers' minds. Any elation has to be tempered with the fact that the RBI seems quite deeply concerned with global outlook.
The pessimism emanating out of China and the commodity markets is real time here. One needs to cogitate beyond market euphoria ofa rate cut. RBI met against the background of a $ 800 billion fall in international markets on Monday. The commodity prices keep on falling slackened by the lack of demand from China.
With the yen climbing, Japanese companies already reeling from lack of domestic demand will reel further. So after China, Japan too.
If winter comes, can India be far behind...
We definitely know that India is well behind the Government 's target growth rate.
Views expressed are without any risk r responsibility. This blog recommends no investment.
The pessimism emanating out of China and the commodity markets is real time here. One needs to cogitate beyond market euphoria ofa rate cut. RBI met against the background of a $ 800 billion fall in international markets on Monday. The commodity prices keep on falling slackened by the lack of demand from China.
With the yen climbing, Japanese companies already reeling from lack of domestic demand will reel further. So after China, Japan too.
If winter comes, can India be far behind...
We definitely know that India is well behind the Government 's target growth rate.
Views expressed are without any risk r responsibility. This blog recommends no investment.
No comments:
Post a Comment