Posts Tagged: economic slowdown

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How did the GDP growth rate fall to 5%?

A storm took the Indian Economy on August 30, 2019, when the Central Statistics Office (CSO) revealed that the real GDP growth in Q1 of the current fiscal has dropped to a six-year low of 5%. While this issue has created a lot of resentment against the government, renowned economists and politicians are calling it "all-round mismanagement" by the Modi Government. We must understand both the statistical picture and the causes behind the statistics.

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Can DHFL Survive?

Some of the most important companies in India are facing serious trouble and it just reflects the management issues and economic slowdown peering upon the big companies. Last year, we saw a key non-banking financial company, Infrastructure Leasing & Financial Services (ILFS) crashing down. The earliest private airline company, Jet Airways closed its shutters down. Anil Ambani’s Reliance Communication filed for bankruptcy. Most recently, Dewan Housing Finance Corporation (DHFL) is facing survival blues.

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Yes Bank’s Share Price: Tumbling.

Aren’t stock markets known to be a risky investment? As the saying goes, ‘more risk, more returns’, but is it really true? The ups and downs of the share price can be a reason for happiness and trouble, both. With the overall economic slowdown, the downgrade of most share prices has knocked down the profits for most investors.

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Why is RBI cutting Repo rate constantly?

Based on current and evolving macroeconomic situations, the Reserve Bank of India’s monetary policy committee decided to cut the repo rate under the liquidity adjustment facility by 35 basis points from 5.75 percent to 5.40 percent. This is the fourth time in a row that the RBI has cut the repo rate this calendar year (2019). In the last three monetary policy reviews, the rate cut is by 25 basis points. Repo rate is the benchmark-lending rate at which the central bank of the country lends money to commercial banks for about 7 to 14 days in the event of any shortfall of funds. The repo rate acts as a floor below which the short term interest rates don’t go. The repo rate is used by the central bank to control inflation. A decrease in repo rate means lower cost of short term money which reduces the EMIs on home and auto loans and the debt repayment burden, boosting economic growth.

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RBI and Currency Printing Limits: Explained

When the economy badly needs support in times of crisis, one question circulates like wildfire - “Why can't the government ask RBI to print tons of money?” Well, here's why.

Posts Tagged: economic slowdown

How did the GDP growth rate fall to 5%?

Can DHFL Survive?

Yes Bank’s Share Price: Tumbling.

Why is RBI cutting Repo rate constantly?

RBI and Currency Printing Limits: Explained

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