When globalisation started, interest rates were gradually reduced and inflation was under control. Now in the last few years government is increasing the interest rates. This will make inputs to industries costlier resulting in increasing inflation.
Countries like Singapore where inflation is tightly controlled, the interest rates are very low, further they are not changed for the last ten years.
Fixed deposit holders may feel happy to receive 10, 10.5 percent rates for 2/3 years deposit.
But with the money they gain they can not buy articles as their prices will gallop.
Ramakrishnan
http://www.oasisram.blogspot.com/
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