Good Evening friends,
End of another busy day. Working with time frame leads towards tension. Tension of not another thing but just keeps us conscious about our responsibilities. I think I love it this way. I was reading new paper and I found that India Inc expects that RBI should cut down repo rates. This is out put of survey carried out by associated chambers of Commerce and Industry of India (Asshochem) among 105 CEOs and MDs. I read the news at yahoo india.
India Inc is hopeful that the Reserve Bank of India (RBI) would bring down repo rates to seven percent from the current eight percent and create a mechanism to monitor banks’ lending, according to an industry lobby survey.
The survey, carried out by the Associated Chambers of Commerce and Industry of india (Assocham) among 105 chief executive officers (CEOs) and managing directors, said 77 percent of the participants were of the view that the RBI would further cut repo rates, the interest charged on borrowings by commercial banks, by 100 basis points to calm down volatility in domestic markets.
The recent slash of 100 basis points in repo rate was ‘a welcome move but we expect the bank to complement the move with further rate cut in the coming policy review,’ Assocham president Sajjan Jindal said.
‘The survey suggests that reasonable liquidity has already been infused into financial system as thousands of India Inc’s applications are pending with banks for sourcing loans. This fear psychosis needs to be removed from banking system with constant monitoring from the RBI on banks extending loans,’ the survey report said.
more in next post.
