Rate Increase could hurt India growth Story (PowerMyLoan.com)...
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Though this rate hike has been done in the name of curbing the inflation but any further rate hikes (or even this much) could end up hurting the India growth story itself. Inflation is currently due to demand supply imbalance in primary sector, which may not be cured by interest rate hikes alone. Next harvest could bring some respite (or is there an election angle to it , remember BJP is running Radio and Print ads against inflation?). Lets see, but any more increase would definitely trigger the panic button.
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The real reason for inflation is hoarding, by cutting money flow they will not achieve any thing other than slowing down of economy
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