The market's three worries : Akash Prakash

….The second issue concerns the direction and pace of interest rate cuts and monetary policy easing. Many market observers had pencilled in 150 basis points of interest rate cuts by the Reserve Bank of India in the calendar year 2012, and a full pass-through of these cuts by the banking system, and thus were quite bullish on both the market and the general economic outlook. However, this may no longer be possible. Many of the more astute economic commentators now think that rate cuts will not be more than 50 to 75 basis points — and even these will not be fully passed on by the banking system to borrowers……

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