Home > Business > Budget 2004-05 > Report

Interest rates may go up: Survey

July 07, 2004 12:45 IST

The pre-Budget Economic Survey on Wednesday hinted that the interest rates may go up due to high fiscal deficit and improved credit demand from the commercial sector.

"With fiscal deficit remaining high and signs of pick up in the flow of credit to commercial sector, the possibility of interest rates moving northwards cannot be ruled out," the Survey, tabled in Parliament, said.

Economic Survey 2003-2004: Complete Coverage

It also said the Reserve Bank of India has continued its soft interest rates policy stance, imparting greater flexibility to the interest rate structure.

RBI had progressively reduced the Bank Rate, the interest it charges to the commercial banks, to 6 per cent and the Repo Rate, the interest charged by the banks when they lend to RBI, to 4.5 per cent.

Article Tools
Email this article
Top emailed links
Print this article
Write us a letter
Discuss this article

Related Stories

Will interest rates firm up?

Govt to slash revenue deficit

India's forex reserves stand at?

People Who Read This Also Read

Lazy bankers

Chirag Mehta, the Icenet man

DVDs to suit every pocket

© Copyright 2004 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.

Budget 2004-05: The Complete Coverage | Rail Budget 2004-05

Share your comments

 What do you think about the story?

Read what others have to say:

Number of User Comments: 3

Sub: ha ha ha he he he hu hu hu hu hu

ha ha ha he he he hu hu hu hu hu ha ha ha he he he hu hu hu hu hu ha ha ha ...

Posted by agar

Sub: regarding privatisation of psu's

i think each psu shd b privatised but in the greater interest of its employes & nation at least 51% of its shares shd b ...

Posted by Dr Sauirabh S Odak

Sub: The jazz is played in the US.

Alan is the conductor. However, it is not understood why should Bharat Varsh dance and zoom to this American Jazz !!! Dont we have our ...

Posted by chanakya


Copyright © 2004 rediff.com India Limited. All Rights Reserved.