RBI is acting fast now. Better late than Never!
The REPO rates have been cut by 100 basis points and which would mostly bring in 40k Crores into the system which is reeling under the pressure of Liquidity Crunch. The crunch is so high that the Redemption given by me in a Debt scheme on 11/Oct has not yet reached me!
The market was further crumbling due to lack on money in the hands of the people.
The Interest rates scenario seems to have come to an end the day we see Lending rates being cut, there would be flutter of activity in the bond market and the situation for the equity market would look better.
RBI and Fin Min are fearing the Inflation factor which may move up if the lending rates are cut and they would not like to take chance being the elections season.

Vivek Karwa

Certified Financial Planner^CM