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India Raises Interest Rates And Cuts Growth Forecast


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http://www.bbc.co.uk/news/business-15441522

India's central bank has raised interest rates and cut its growth forecast amid high consumer prices and slowing global growth.

The Reserve Bank of India (RBI) raised its key rate to 8.5% from 8.25%, the 13th increase since March last year.

The increase comes amid a high rate of inflation that saw consumer prices rise 9.72% in September from a year ago.

The RBI also cut its growth forecast to 7.6% from 8%, citing worsening global economic conditions.

Nice IR lagging way behind inflation.

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Carry trade in GBP - I am getting 9.5% on a 9 month fixed deposit in India with HSBC. The extra benefit is that GBP is weakening against the Rupee so its a double win at the moment. Fingers crossed it will at least stay par over the longer term, (1 to 2 years). I know a lot of Indiains living in the UK are doing the same.

Hopefully, the UK won't introduce any exchange controls for a while.....

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Oh dear....................................................................................

Some advice, don't put any money in the Indian sub continent because if you do, you could literally see your money go up in smoke.

The political situation in the region is getting worse (those from the area will tell you that its always been the way and is nothing to be concerned about), what's happening is India and China are in competition with each other to be the regions super power, China is no friend of India and there is precious little love lost on either side of the border, China is supporting Pakistan with military aid in the hope it can fund a war against India by proxy. China has a massive naval facility in Burma and India is desperately trying to upgrade and enlarge its Navy to counter the Chinese threat.

It is likely to come to blows within next few years, and is one reason why a lot of Indians with money are desperate to escape to the UK.

There was an incident this week involving a helicopter being forced down on the wrong side of the Pakistan/Indian border

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Oh dear....................................................................................

Some advice, don't put any money in the Indian sub continent because if you do, you could literally see your money go up in smoke.

The political situation in the region is getting worse (those from the area will tell you that its always been the way and is nothing to be concerned about), what's happening is India and China are in competition with each other to be the regions super power, China is no friend of India and there is precious little love lost on either side of the border, China is supporting Pakistan with military aid in the hope it can fund a war against India by proxy. China has a massive naval facility in Burma and India is desperately trying to upgrade and enlarge its Navy to counter the Chinese threat.

It is likely to come to blows within next few years, and is one reason why a lot of Indians with money are desperate to escape to the UK.

There was an incident this week involving a helicopter being forced down on the wrong side of the Pakistan/Indian border

Lets hope it doesn't kick off, with the amount of outsourced services out there the UK would grind to a stop.

Don't get me wrong I'm all in favor of work returning to the UK, but for most UK companies a disaster recovery plan for outsourced services is usually a 5 year old out of date document, if it exists at all, and most of them have made the UK staff who did know how to do stuff redundant

Edited by madpenguin
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Lets hope it doesn't kick off, with the amount of outsourced services out there the UK would grind to a stop.

Don't get me wrong I'm all in favor of work returning to the UK, but for most UK companies a disaster recovery plan for outsourced services is usually a 5 year old out of date document, if it exists at all, and most of them have made the UK staff who did know how to do stuff redundant

Let's hope it doesn't kick off because lots of people with die.

As for UK companies outsourcing, they need to get ahead of the curve then don't they!

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Carry trade in GBP - I am getting 9.5% on a 9 month fixed deposit in India with HSBC. The extra benefit is that GBP is weakening against the Rupee so its a double win at the moment. Fingers crossed it will at least stay par over the longer term, (1 to 2 years). I know a lot of Indiains living in the UK are doing the same.

Hopefully, the UK won't introduce any exchange controls for a while.....

What about Mongolia?

13% interest and 13% appreciation (15% appreciation versus USD but GBP 2% up this year against USD).

http://www.sovereignman.com/

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Lets hope it doesn't kick off, with the amount of outsourced services out there the UK would grind to a stop.

Don't get me wrong I'm all in favor of work returning to the UK, but for most UK companies a disaster recovery plan for outsourced services is usually a 5 year old out of date document, if it exists at all, and most of them have made the UK staff who did know how to do stuff redundant

A few more years of inflation rate at 10% per year plus appreciation of the rupee must be making some of those outsourced deals start to look a bit uneconomic?

Anyone got any figures ?

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