RBI credit policy on 31st July

The next RBI credit policy is on 1st August. This is possible the most defining momement in the economic history our our country. The recent events are making the outcome of the credit policy very interesting and is keeping everyone guessing (Related news at RBI may not change rates, inflation under watch and Corporates foresee fall in rates: Survey ). Here are a few events that have to be considered by the RBI

1. The month of July witnessed USD 5 Billion invested in our stock market by Foreign Institutional Investors (FII).

2. The stock market cracked over 550 points in one day on 2th July following concerns on the corrections in the international markets led by the US. Read more and related news at Markets likely to correct further next week

3. The Indian Ruppee cracked 17 paise to move from Rs 40.34 to a US dollar to 40.51 causing a fair bit of appreciation for a single day.

4. India Inc growth at 5-quarter low - Read related news at India Inc growth at 5-quarter low

5. Crude prices soar above 77 dollars a barrel - Read related news at Crude prices soar above 77 dollars a barrel

Meanwhile, the banks have started decreasing their interest rates for their deposits. See related news at Fixed deposits to earn lower interest.... These moves by the banks are causing a fall in the rates offered by FMPs - Are FMPs losing their sheen?