Global Economic Meltdown; Blessing in Disguise?
In its relentless pursuit for reducing the domestic lending rates, the RBI has announced a 50 basis point rate cuts on 4th of March 2009. The earlier reductions have not yielded any substantial results, except few gestures by some PSU banks- one here and another there. It is still intriguing to see that India`s official rate of inflation is hovering around 3 percent but the Prime Lending Rate is still in the 12% above range. Even at this rate latest data suggests that the country is witnessing respectable growth in investment. But with the latest rate cuts, it is anybody`s guess that the lending rates may come down or not, though knowledgeable sources feel that it may remain sticky at the current levels. It is still confusing to watch that in US or Japan where the interest rates are in the vicinity of 1% or so, neither credit is flowing nor investment is picking up. Contradictions galore- as many developed countries are now becoming a terrified and fearful cluster, Indians are foolishl...