Aug 8 | 2020

Quote

Push Yourself, 

Because No One Else 

Is Going To Do It

Q1  “The RBI holds interest rates citing concerns about the inflation outlook.”, give your opinion. ( word limit 200).

The RBI decision to hold interest rates is conducive according to the current scenario amid extreme uncertainties are sighted.because of the vast devastation by the pandemic has halted all economic activities as well as global trade .it is necessary to keep the powder dry shortly.

However, RBI reduced interest rates from time to time for increasing liquidity in the market.the current repo rate is 4%,reverse repo rate is 3.35%,bank rate is4.25,MSF is 4.25, CRR =3%,SLR =18% is  lower than previously .now,time to focus other measures which protect our financial stability .

After the pandemic, where global trade severely posed, the ties with other countries as China, which is the biggest trading partner of India is to become worse, whereby the possibilities to revive our economy is being powerless.

Now, the onus is on RBI governor to ensure financial stability otherwise any harm which directly affects the economy only makes the current situation worse and its overhaul couldn't be possible 

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