interestrateripoff Posted October 25, 2011 Report Share Posted October 25, 2011 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. Quote Link to post Share on other sites
Traktion Posted October 25, 2011 Report Share Posted October 25, 2011 http://www.bbc.co.uk/news/business-15441522 Nice IR lagging way behind inflation. Or is it that raising the base rate isn't going to help, due to freshly printed hot money flooding in from the west, looking for yield? Quote Link to post Share on other sites
tomandlu Posted October 25, 2011 Report Share Posted October 25, 2011 Nice IR lagging way behind inflation. Any chance of anyone explaining why India has high inflation? Is there wage inflation or just prices? Quote Link to post Share on other sites
interestrateripoff Posted October 25, 2011 Author Report Share Posted October 25, 2011 Any chance of anyone explaining why India has high inflation? Is there wage inflation or just prices? It's the Ben Bernanke. Quote Link to post Share on other sites
aa3 Posted October 25, 2011 Report Share Posted October 25, 2011 7.6% is not bad. You double every 10 years at 7%. The population of India is growing at 1.46% a year.. so that is a 6% real increase per year, fairly good. Quote Link to post Share on other sites
Rakno Posted October 25, 2011 Report Share Posted October 25, 2011 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..... Quote Link to post Share on other sites
Hectors House Posted October 25, 2011 Report Share Posted October 25, 2011 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 Quote Link to post Share on other sites
madpenguin Posted October 25, 2011 Report Share Posted October 25, 2011 (edited) 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 October 25, 2011 by madpenguin Quote Link to post Share on other sites
R K Posted October 25, 2011 Report Share Posted October 25, 2011 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! Quote Link to post Share on other sites
Democorruptcy Posted October 25, 2011 Report Share Posted October 25, 2011 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/ Quote Link to post Share on other sites
getknk Posted October 25, 2011 Report Share Posted October 25, 2011 I feel i should put my money in India for 7 years and get back to UK.. the money should double in that time !! Quote Link to post Share on other sites
Guest spp Posted October 25, 2011 Report Share Posted October 25, 2011 It's the Ben Bernanke. Quote Link to post Share on other sites
skomer Posted October 25, 2011 Report Share Posted October 25, 2011 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 ? Quote Link to post Share on other sites
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