THE RESERVE BANK OF INDIA RAISES INTEREST RATES
Our Global Multi-Asset Allocation Model has a long allocation to India. The Reserve Bank of India raised its short-term lending and borrowing rates late Friday. It raised the repo rate (rate at which it lends to banks) and reverse repo rate (rate at which banks park their funds with it) by 0.25 per cent each to 5 and 3.75 per cent respectively .
This move by theReserve Bank of India does not change the allocation to India in our model.
The high priests of Indian markets have almost uniformally called this interest rate increase as surprise. We are not surprised.… Please click here or the title below to read more.
March 21, 2010