INTEREST RATES IN INDIA LIKELY TO RISE
UNIQUE TIMES|March - April 2021
Investors are becoming uncomfortable with the surge in money printing by central banks and that has also led to the ongoing rush of investments into digital cryptocurrency. The balance sheet of the US Federal Reserve has jumped from $4 trillion to around $7 trillion in 2020, a 75% growth in a single year, thereby expanding the supply of dollars at an unprecedented pace. The debasement of the US dollar has been a major source of support to gold prices. However, the returns on gold during the year have been far outstripped by the multi-fold rise in digital cryptocurrencies. Bitcoin, the most famous of the cryptocurrencies, rose 700% in 2020 and, over the course of the last 5 years, it has given returns of 85 times!
- V.P. Nandakumar
INTEREST RATES IN INDIA LIKELY TO RISE

An important development for the Indian economy in recent years has been the remarkable success achieved in lowering interest rates. This came about because the RBI has steadily cut its key policy rate since January 2014 when the repo rate had peaked at 8 per cent. The repo rate has now come down to 4 per cent (the lowest ever) for a total reduction of 4 percentage points over six years. During the global financial crisis of 2008, the repo rate had bottomed out at 4.75 per cent before starting to rise again. Incidentally, the RBI had tried to raise rates briefly from June to August 2018, when it increased the repo rate from 6 to 6.5 percent. In fact, in the March 2018 issue of this publication, my article titled “Are interest rates poised for reversal?” about my expectations of interest rates heading up, proved correct in that the RBI increased the repo rate from 6 to 6.25 per cent in June 2018 and then to 6.5 per cent in August 2018. However, the IL&FS crisis hit the economy towards the end of 2018 and there were no further hikes.

The RBI’s move to cut interest rates over the last 3 to 4 years followed the decline in India’s inflation rate and reflected its confidence in the government’s ability to keep a lidon fiscal deficit.

During its February 2021 meeting, the RBI left its benchmark repurchase rate at 4 per cent stating that it would maintain an accommodative stance as long as necessary to support the economy hit by the COVID-19 crisis, while ensuring that inflation remains within the target going forward. The RBI revised its inflation forecast to 5 per cent from 5.2 per cent in H1 2021-22 and 4.3 per cent for Q3 2021-22. Meanwhile, the real GDP growth is projected at 10.5 per cent in 2021-22.

この蚘事は UNIQUE TIMES の March - April 2021 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は UNIQUE TIMES の March - April 2021 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

UNIQUE TIMESのその他の蚘事すべお衚瀺
Bhutan: The Enchanting Jewel Of The Himalayas
UNIQUE TIMES

Bhutan: The Enchanting Jewel Of The Himalayas

Majestic snow-capped mountains, picturesque valleys, verdant forests, centuries-old Buddhist shrines and monasteries, fluttering prayer flags, a serene way of life and folks boasting the best happiness index in the world...this Land of the Thunder Dragon has much more to entice those with wanderlust.

time-read
6 分  |
October - November 2024
Bail - Emerging Trends In The Context Of Money Laundering Laws
UNIQUE TIMES

Bail - Emerging Trends In The Context Of Money Laundering Laws

The Hon'ble Supreme Court in case of Manish Sisodia Vs Directorate of Enforcement 2024 SCC Online 1920 has upheld certain key propositions that where a trial has not merely been delayed but has not even commenced after a long period of incarceration, the same would be violative of Article 21 of the Constitution of India.

time-read
5 分  |
October - November 2024
Toyota, Maruti Suzuki Boost Hybrid Vehicle Sales in Uttar Pradesh Amid Tax Waivers, Spark Industry Debate
UNIQUE TIMES

Toyota, Maruti Suzuki Boost Hybrid Vehicle Sales in Uttar Pradesh Amid Tax Waivers, Spark Industry Debate

Toyota and Maruti Suzuki are ramping up marketing efforts for hybrid vehicles in Uttar Pradesh, leveraging new state tax waivers that offer buyers savings of up to $15,800 on luxury models like the Toyota Vellfire.

time-read
1 min  |
October - November 2024
Supreme Court Rejects AAP Government's Plea to Expand NRI Quota in Punjab Medical Colleges
UNIQUE TIMES

Supreme Court Rejects AAP Government's Plea to Expand NRI Quota in Punjab Medical Colleges

The Supreme Court rejected the AAP-led Punjab government's plea challenging the High Court's ruling against expanding the ‘NRI quota’ to include distant relatives for medical and dental college admissions.

time-read
1 min  |
October - November 2024
USA's Delaware Supreme Court Confirms Byju's Default on $1.2-Billion Loan Amidst Ongoing Insolvency Proceedings
UNIQUE TIMES

USA's Delaware Supreme Court Confirms Byju's Default on $1.2-Billion Loan Amidst Ongoing Insolvency Proceedings

The Delaware Supreme Court has upheld a ruling that edtech firm Byju's defaulted on a $1.2 billion Term Loan B (TLB), validating claims made by US-based lenders.

time-read
1 min  |
October - November 2024
India Approves Rs 3,300 Cr Semiconductor Packaging Plant in Gujarat, to Boost Chip Production
UNIQUE TIMES

India Approves Rs 3,300 Cr Semiconductor Packaging Plant in Gujarat, to Boost Chip Production

The Union Cabinet has approved a Rs 3,300 crore proposal from electronics manufacturer Kaynes to establish a semiconductor packaging plant in Sanand, Gujarat.

time-read
1 min  |
October - November 2024
Thar Roxx: Your Perfect Off-Road Companion
UNIQUE TIMES

Thar Roxx: Your Perfect Off-Road Companion

To say that Mahindra knows the Indian customer really well, will be an understatement. Their biggest hits have come in various forms over the years, from the XUV500 to the XUV700 and the Scorpio N in recent times.

time-read
3 分  |
October - November 2024
Exfoliate Your Way to Flawless Skin
UNIQUE TIMES

Exfoliate Your Way to Flawless Skin

Imagine waking up to smooth, glowing skin every day—skin that feels soft to the touch and looks naturally radiant without the need for heavy makeup or filters.

time-read
3 分  |
October - November 2024
The Stinking Rose: Flavourful and Full of Health
UNIQUE TIMES

The Stinking Rose: Flavourful and Full of Health

Garlic, the humble bulb with a pungent aroma and a rich history dating back thousands of years, has earned a reputation not only in culinary delights but also as a powerhouse of health benefits.

time-read
2 分  |
October - November 2024
Never give up!
UNIQUE TIMES

Never give up!

In the earlier stage of your life, it was someone else who might have been gravely instrumental in shaping your viewpoints. Hence, it is supremely important to re-evaluate what you believe in, when you become an adult.

time-read
4 分  |
October - November 2024