Saturday, March 16, 2013

Monetary Review 2017 and more.....

These are the probable scene which will be witnessed in 2017 Monetary Review

RBI has reduced the CRR further and the CRR now stands at -3%. That means  RBI will give an extra  3% of the banks total deposits to all the banks to overcome the liquidity issue.

SBI chairman Pramod Chapri so upset about RBI with the minus 3%  CRR. He argues RBI should give unlimited money to the banks without any interest cost and the CRR itself is a  idiotic banking practice followed centuries ago.

Repo Rate is reduced further and now stands at -4%. This means mango men ( You and me) have to pay 4% interest to keep your money in the bank deposit.

FICCI President Podi Godrej reportedly unhappy with RBI, that the repo rate is reduced only up to 4%. He wondered how industry will grow if the repo rate is -4. He wanted RBI to reduce the rates further.

Karthi Chidambaram ( he would become finance minister by then) expects RBI governor Ramarao to act responsibly to reduce rates further to -10%, so that poor Kumbani's and Jehindra's can eat atleast a square meal per day.

In a separate news, the CPI inflation touches 23% and the WPI inflation is at 12%. Taking note on this inflation figure PMEAC chairman sundarrajan says the WPI decreases by 0.00002% which actually gives room to RBI to cut the rates further. Further he noted that the price of jet engine reduces by 100%, which is what we need to look as a sign of cooling inflation.

Planning commission deputy Chamcha singh puts blame of rural people. He says rural people has become more arrogant these days and started eating decent food for 3 times per day which puts more pressure on the inflation. He also expressed dismay about the fact that poor people started drinking coffee everyday. He also says government is taking effective steps to arrest this trend.

Meanwhile real estate continues to thrive and the price of a single bedroom flat is 10 crore even though 100000 crores of apartments still vacant in the country.

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