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Inflation
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vijendra (IV012501)



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April WPI index fall to 41 month low at 4.89%, will RBI cuts its key policy rates in his next policy meeting on 17 june and how this will effects the Indian economy?

This message was edited 1 time. Last update was at 15/05/2013 12:57:22

manish (IV0767101)



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As the inflation has down to 4.89% its rises the hopes of RBI to cuts its key policy rates, Indian economy growth is slowing down it is good to cut interest rate as WPI for april month plunged below 5, hits 41 months low. it is good time to cut interest rate and boost the Indian economy.
sandrajames (IV05718901)



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Due to inflation, RBI cuts the policy rates which implies that less amount of money will be paid by commercial banks to RBI as interests. So banks can take more money from RBI and there will be more liquidity of cash in the market. This can have 2 broad implications that is one there will be more money in the market will help the business grow because more people will opt for a business loan. They can take cheaper loans. This will lead to an increase in the economy of the country.
wilsontaylorer (IV06256301)



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sandrajames (IV05718901) wrote:Due to inflation, RBI cuts the policy rates which implies that less amount of money will be paid by commercial banks to RBI as interests. So banks can take more money from RBI and there will be more liquidity of cash in the market. This can have 2 broad implications that is one there will be more money in the market will help the business grow because more people will opt for a business loan. They can take cheaper loans. This will lead to an increase in the economy of the country.
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This message was edited 1 time. Last update was at 08/07/2019 11:27:59

bdbakientv (IV06397501)


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Location: So 12, Duy Tan Cau Giay Ha Noi
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data sgp (IV07342201)



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