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Q.

Will repo rate increase curb the inflation as claimed by the Finance Ministry and Planning commission? Your views?

Tags: money, repo rate, ministry
Asked by Good Citizen, 04 May '11 01:33 pm
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Answers (3)

 
1.

I am optimistic by nature but in this case I do not think Repo rate increase alone would work wonders. To some extent it should help to arrest inflation but that insignificant and insufficient. Bank will get the money at a higher rate from RBI and will lend to Customer at higher rate attracting money thru interest from them, What about the private lendors and those who have excess money . To arrest excess money floating around the consumer market policy needs face lifting and the taxation structure needs to be revamped. Lets wait and see to what extent Govt. with this tool becomes really effective.
Answered by Mohammed asim nehal, 04 May '11 03:14 pm

 
  
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2.

They said 60000 Cr of rupees will be sucked out fm the circulation by that increase hence there is a possibility of containing inflation
I wish it happens
Answered by SriniVenkat, 04 May '11 01:36 pm

 
  
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3.

Only to some extent
Answered by Gautam, 04 May '11 01:34 pm

 
  
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