Oct 26, 2013, 05.38 PM IST
Sonal Varma, Executive Director & India economist, Nomura explains that the interest rate at which I borrow from a bank will be a function of the base rate that a bank charges but the base rate in turn is determined by various factors including what is the interest rate stance of the central bank.
Like this story, share it with millions of investors on M3
How does RBI's interest rate hike impact consumers?
Sonal Varma, Executive Director & India economist, Nomura explains that the interest rate at which I borrow from a bank will be a function of the base rate that a bank charges but the base rate in turn is determined by various factors including what is the interest rate stance of the central bank.
Like this story, share it with millions of investors on M3
How does RBI's interest rate hike impact consumers?
Sonal Varma, Executive Director & India economist, Nomura explains that the interest rate at which I borrow from a bank will be a function of the base rate that a bank charges but the base rate in turn is determined by various factors including what is the interest rate stance of the central bank.
A: It has. It clearly has a direct impact not just indirect. The interest rate at which I borrow from a bank will be a function of the base rate that a bank charges but the base rate in turn is determined by various factors including what is the interest rate stance of the central bank. Similarly, the interest rate that a bank offers me as a consumer on my deposits will be a function of what is the interest rate that Reserve Bank Of India has indicated. So, as a household the consumer loans that I take as well as the interest rate that I get on my deposit is determined by what the Reserve Bank of India does.
As well as from a corporate perspective, the cost of borrowing is determined by where the Reserve Bank of India sets its interest rates and ultimately my behaviour as a household and a corporate behaviour will determine how the overall demand in the economy is. So, both through direct channels on money supply as well as through indirect channels through the interest rate setting behaviour, the Reserve Bank of India determines what should be the interest rate that a commercial banks sets and therefore in that process determine how households and corporates actually behave.
Earlier posts by the same author
Get Wealthy Tool Kit
The basics
Tools and calculators
Anda sedang membaca artikel tentang
How does RBI's interest rate hike impact consumers?
Dengan url
https://duniadalamsehat.blogspot.com/2013/10/how-does-rbis-interest-rate-hike-impact.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
How does RBI's interest rate hike impact consumers?
namun jangan lupa untuk meletakkan link
How does RBI's interest rate hike impact consumers?
sebagai sumbernya
0 komentar:
Posting Komentar