Pol­icy Rates Likely to Soften

The Economic Times - - The Edit Page -

Apro­pos ‘Why 2017 is Not 201216’ by Chetan Ahya (Aug 1), the re­cent buoy­ancy in the stock mar­ket is largely due to ex­pec­ta­tions that the RBI would lower pol­icy rates. But mount­ing bad loans will hurt the econ­omy, and must be re­solved quickly for in­vest­ment to fruc­tify. Con­sump­tion will drive eco­nomic growth. The fall­ing CPI post-GST is likely to fuel con­sump­tion-driven growth. But the credit risk of banks may dent the growth of EMs, in­clud­ing In­dia. Over­all, eco­nomic in­di­ca­tors for growth are not mov­ing in tan­dem, just yet.

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