http://www.livemint.com/Politics/mPpp3nja36R9yf605XhEWO/If-you-cant-act-when-oil-is-at-30barrel-when-will-you-J.html
More importantly, it would have reduced inflation rates, and by RBI’s own estimates, by another 100-odd basis points. We would then have cut nominal interest rates by another 100 bps. Had government passed on the benefits of lower oil price, it would have led to inflation being down by another 100 bps, and rate cuts of another 100 bps from where we are today. Oil prices alone contributed an additional 0.5% to the GDP numbers budgeted in February last year—so what did the government do with that additional 0.5%?
http://www.livemint.com/Money/NO57GdrDlPa1a2MqhlFATI/More-than-half-of-BSE-100-firms-missed-estimates-in-December.html
More importantly, it would have reduced inflation rates, and by RBI’s own estimates, by another 100-odd basis points. We would then have cut nominal interest rates by another 100 bps. Had government passed on the benefits of lower oil price, it would have led to inflation being down by another 100 bps, and rate cuts of another 100 bps from where we are today. Oil prices alone contributed an additional 0.5% to the GDP numbers budgeted in February last year—so what did the government do with that additional 0.5%?
http://www.livemint.com/Money/NO57GdrDlPa1a2MqhlFATI/More-than-half-of-BSE-100-firms-missed-estimates-in-December.html
Bank earnings when studied separately, showed that aggregate net profits for the 39 listed banks fell 89% after bad loans and provisions surged following RBI’s asset quality review.
“Clearly, RBI is driving the clean-up of the banks’ balance sheets. It is expected to continue till 31 March. So, even next results are going to be impacted. We will have a clear picture on the banks’ balance sheet. This is not a bad thing. Till now, people have been speculating on stress levels for banks. Now, we will be able to see how much it actually is,” said Arora of Macquarie.
Comments