.........Even though the Reserve Bank of India (RBI) has gradually been reducing rates, there is considerable skepticism in the market about its impact on investment demand. According to Goldman's analysis on the relationship of interest rates and investment demand, a 1 per cent decline in short-end rates (3-month CD) leads to a 2.7 per cent increase in Gross Fixed Capital Formation (GFCF). The impact happens with a lag of four quarters..........
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