RBI - Credit Policy

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Reserve Bank had come-up with its first credit policy and how it's going to affect the economy, people and business.

1. Increase Bank Rate means RBI is ahead to fight the ongoing inflation like the Onion Prices, Vegetables, Fruits and Milk.
2. United States is continuing with the buy-back of bonds for a limited period and India opposing that came up with tightening policy so that it will control the market like stock market, commodity market and more.
3. This will ease the price of falling rupee as Saving will overhead Investment as people will be saving in the bank to get more interest rate.
4. Government had to decrease expenditure and increase the tax revenue. But Government must not cut on the spending for health, education and public finance.
5. Fiscal policies must be good as helping to improve living standard of the people. This will improve the consumption pattern of the people.
6. Home Loan and Auto Loan will increase but still lot of rooms are there to buy.

CAT 2013; Yahoo News

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