MUMBAI: After a gap of three years, Reserve Bank governor D Subbarao on Tuesday slashed short term lending rate by 0.50 per cent to 8 per cent, a move that will reduce the cost of home, auto and corporate loans.

ibnlive.in.com/generalnewsfeed/news/expe...nchanged/987152.html

samix wrote:
MUMBAI: After a gap of three years, Reserve Bank governor D Subbarao on Tuesday slashed short term lending rate by 0.50 per cent to 8 per cent, a move that will reduce the cost of home, auto and corporate loans.

ibnlive.in.com/generalnewsfeed/news/expe...nchanged/987152.html

Samix, we could respond to this news in two ways.

On the one hand, we must note that India (like MANY "developing economies") has REALISTIC INTEREST RATES. That is, living in a world of INSANE money-printing, an official interest rate of 8% is SOME acknowledgement of the inflationary world we live in - as opposed to the ridiculously FRAUDULENT official interest rates of the U.S., Canada, and Europe.

So like China and many other RESPONSIBLE economies around the world, it is NOT to blame for the imminent hyperinflation which the West is about to inflict upon the world. Indeed, the low-wage workers of China and India have DAMPENED inflation (temporarily) when they were USED to replace high-wage workers in the West.

At the same time, ANY reduction in interest rates at this level is also a very regressive move for ordinary people - since I'm assuming that (real) inflation in India is ALSO above 10%. Thus savers in India are ALSO been raped by the bankers - and lowering interest rates only AGGRAVATES that rape.

What is UNCLEAR is whether the Reserve Bank of India is raping its own population merely to PLEASE Western bankers, OR whether it's raping its own population in this manner (by lowering interest rates) because it's fearful of a pending economic collapse (i.e. severe recession/depression)...