It is true, that if you want to make quality decisions you need proper information. In current scenario of recessions Indian banks are forced to offer loans on lesser rates and reduce deposit rates. They are doing so because daily news are coming of declining inflation rates or even inflation moving in sub zero territory.
The irony of system is that this declining inflation is calculated using age old system of considering whole sale prices not the consumer prices. The situation is, on papers inflation is decreasing but consumer is paying more as prices in retail are increasing.
When there would be a synchronised system to calculate inflation or deflation and allow banks to decide their lending and deposit rates.
There needs to be some logics, simple may be.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment