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Unformatted text preview: nment.
Though far - fetched, the RBI, does take in to consideration the FED rates. US FED at the last
moment, held on to the previous rates, contrary to the market news that FED (Short term and
medium term) rates will come down. It is all the more important that the rupee does not slip vis a
vis the USD, as the USD will continue to maintain its strong position with no change in FED
This is why RBI officials insist that even if the economy slows down( more importantly the
service sector, which for all these years has acted as an impetus to the overall growth of the
economy, also showed slow down,) The RBI cannot afford to decrease the value of CRR and the
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