As I have believed & stated many times in my previous posts that repo & reverse repo rates are still high due to which liquidity in the economy is not flowing.
In today's FE there is an editorial which gives you more insight about how repo & reverse repos are acting hurdle between banks & economy.
In that, editorial talked about only repo rates but I believe reverse repo rates also should reduced to subsequently till June - July 2009 to avoid the deflation from which again so called very effective base effect starts acting. At least from lower PLR (Prime Lending Rates) economic activities starts/speedup.
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