Interest rate of loan and investment in bank difference is very high. So we are not getting enough interest payments to spend also. This is very much bad on bank part.
There seems to be a disconnect. When inflation is high, central banks usually try to bring that down. Stable and low inflation is good for economy, because it encourages people to spend and it also encourages people to save - as the value of their savings di not dissipate. The issue here was - how RBI reached their goal. The conclusion here that high interest rate was unsuccessful and increasing capital reserves (when banks have to set aside more money for loans) was successful is myopic and disingenuous. These options are tools at RBI’s disposal - which worked to increase the cost of loans. When prices of loans increase demand falls. So - the question we should be asking is: “Why” the high base rate of the RBI failed to curb loans to consumers? Without understanding the causal relationship - if the RBI cuts interest rates it could have unintended consequences.
Repo rates have had nothing to do with consumer lending; both quantum and rate of interest. To create a non existent correlation and then attribute the same to RBI's so called failure is plain and simple wrong.
Different sectors should have different interest rates. Having uniform high interest rate only affects growth. China succeeded because of low interest rates to industries and pushed certain sectors by subsidies so they can do more research and increase job growth
Have you analyzed the expenses and compared them with market rates of your produce ? If your input cost is more, you probably adding to the inflation? It's a good effort though from climate change prospective! Kudos to both of you!!
@@abhijitdeshmukh6902 , I've. It cost nothing to produce green vegies atop your terrace and it's more fresh/Quality controlled compared to market. obviously not possible for all vegetables but some can be easily managed.
We are growing 6% and inflation is 10%• And taxes increases income tax limits stay. Overall Indians keep paying inefficient beurocracy and policy makers. What about Inflation in medical, education and all other expenses ?
Food inflation needs seperate efforts on part of the agricultural ministry
No we need more temple
Jai sree ram
Been following your macro data and it is top quality. Keep them coming
Thank you so much for your support! - Sharad
Inflation is high
Intrest rate must be increased higher
Interest rate of loan and investment in bank difference is very high. So we are not getting enough interest payments to spend also. This is very much bad on bank part.
If you are the RBI governor will you have the courage to plunge the rupee by decreasing its value given the high rates in the US.
Middle men have profited the most from high food, vegetable prices. RBI can not do much by keeping interest rates high.
I actually like your show very much. subscribed print just for you
Thank you very much! This is very encouraging. - Sharad
There seems to be a disconnect. When inflation is high, central banks usually try to bring that down. Stable and low inflation is good for economy, because it encourages people to spend and it also encourages people to save - as the value of their savings di not dissipate.
The issue here was - how RBI reached their goal. The conclusion here that high interest rate was unsuccessful and increasing capital reserves (when banks have to set aside more money for loans) was successful is myopic and disingenuous. These options are tools at RBI’s disposal - which worked to increase the cost of loans. When prices of loans increase demand falls. So - the question we should be asking is: “Why” the high base rate of the RBI failed to curb loans to consumers?
Without understanding the causal relationship - if the RBI cuts interest rates it could have unintended consequences.
Repo rates have had nothing to do with consumer lending; both quantum and rate of interest.
To create a non existent correlation and then attribute the same to RBI's so called failure is plain and simple wrong.
When i was telling about failure of RBI , others mocked me. MR DAS to be given highest award fur SELF PRESENTATION!!
Preservation
Its all politics, no political party survided with high inflation...
Nice One
Nice analysis.
Thank you for your feedback! - Sharad
Different sectors should have different interest rates. Having uniform high interest rate only affects growth. China succeeded because of low interest rates to industries and pushed certain sectors by subsidies so they can do more research and increase job growth
That means rate is not high enough
Is GDP Growth & Inflation Calculated in Wholesale or Retail Outlet Price ( eg Reliance Smart Bazar to Register Local Markets )
Good work. Simple, to the point, and well researched. Thanks
Thank you so much! - Sharad
Kitchen gardens may reduce inflation. Do not laugh this off
We have started roof vegetable garden just last week :) to have better quality food.
@prashanthb6521 great.. we too have one since long
Have you analyzed the expenses and compared them with market rates of your produce ? If your input cost is more, you probably adding to the inflation?
It's a good effort though from climate change prospective! Kudos to both of you!!
@@abhijitdeshmukh6902 , I've. It cost nothing to produce green vegies atop your terrace and it's more fresh/Quality controlled compared to market. obviously not possible for all vegetables but some can be easily managed.
@@abhijitdeshmukh6902 My concern is only quality nutrition, expense and physical effort is secondary.
We are growing 6% and inflation is 10%• And taxes increases income tax limits stay. Overall Indians keep paying inefficient beurocracy and policy makers. What about
Inflation in medical, education and all other expenses ?