Until low cost deposit becomes reality no rate cut would come, this will hamper growth, and equity market will fall big. After that we can expect rate cut.
Consumption is slow because small scale industries are getting closed and today small and medium and as owner of hardware shop and i am seeing local business are in very bad shape and agriculture industry is in very poor condition. We need price regulation for ecommerce like amazon,flipkart Middle class family facing high education fees,high health insuurance ,high rental house,high inflation.
Interest rates will be reduced after the Maharashtra election. The government doesn't want prices to go up. So it is sqeezing the economy. Someone told them, you will lose elections if inflation is high. They have a one track mind
So two things no one is asking : Why are companies not investing in capex? given their 2007 levels of profitability and debt/profit ratio. And 2nd why are MFs storing over 10% cash - this is like a RD business
1st time home loaner loan should be write off , this will impact long-term growth huge surplus money in middle class hand . if they can wri8 off lakh of crore corporate loan why not for normal people we were not saving much
