Wednesday, August 26, 2015

Another Argument for Raising Interest Rates in India

Ben Leubsdorf in a recent articles argues the applicability of Philips Curve, which has of late been doubted to be applicable.
Author argues that eventhough the unemployment and inflation data may suggest otherwise, FED may raise the interest rates in its upcoming policy review due in mid-September.
If FED does that, further assuming that the policies announced and implemented by Modi Government, which have been much hyped, start giving results shortly, gives a reason for Industry and Finance Minister to demand an Interest Rate hike from RBI in its next review which is due on September 29.
Interesting to wait and watch.


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Vasant Vihar, New Delhi, India
A Central Banker with 22+ years of experience. Interested in latest developments in Indian Economy and Banking. Certified Trainer with 5+ years of experience in classroom training. VIEWS EXPRESSED ARE PURELY PERSONAL