Latest Debt Outlook - Nov 2012
IFM's debt outlook for the second half of FY 2012-2013
DEBT -Higher Returns with Low Risk
We saw a rising interest rates scenario till 2011 with the RBI raising the rates 13 times by
2.25% in a span of 9 months starting March 2011 on the back of curtailing high inflationary pressures. With the inflation numbers still out of the RBIs comfort zone, the high interest rates are hitting growth. It has hence become a double whammy sword for the RBI to take a directional stance. As the inflation has been curtailed to 7.45% in Oct 2012, the RBI is addressing the growth concerns now by taking up expansionary monetary policy stance by resorting to interest rate cut. This rate cut will give a positive impetus to the debt portfolios.