Tuesday, December 3, 2013

Rates of little interest

The outlook has turned in favour of high interest rates in the foreseeable future. High inflation and RBI’s commitment to reduce inflation through interest rate calibrations implies that the cost of borrowing would remain high and could even increase. Some of the major commercial banks raised their base rates in the last month. This would hurt the profits of the corporate sector because a change in the base rate impacts the full spectrum of borrowers from banks.............

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