After the fuel price hike, we now have an inflation of around 13%. I have heard that the Reserve Bank of India, will further tighten the monetary structure. This means that lending rates are bound to increase. Already, the RBI has hiked the repo-rate, in effect discouraging the banks from lending. What impact it will have on the industries and the growth rate of the economy, is to be seen next.
I was planing to buy a car, which I've put on hold as of now. There is no point in applying for a car loan at a premium rate. Though the car loan rate may come down in the coming months, I suspect if the petrol and fuel prices would. There seems to be a genuine shortage of oil around the world.
With the government in election mode and all other political parties taking it to task, it seems our nation's economic policies are governed by election dates, rather than a comprehensive fiscal policy.
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