RBI's recent measures will at best provide short-term relief, says Shailendra Bhandari, MD & CEO ING Vysya
. But long term, there will be no benefit because if the idea was to
provide cheaper credit then that’s unlikely to happen, he says.
Banks will find it extremely difficult to reduce base rates, he says. Only PSU banks with large mark-to-market losses are likely to benefit, he adds.
Jahangir Aziz, Chief Economist, JPMorgan, says there are solutions around the current account deficit problem, despite all emerging markets with Current Account Deficit (CAD) starting from Brazil, Indonesia, South Africa, taking a beating in the last 4-5 days. "The government actually has to take structural decisions now to get back structural portfolio flows, both on the debt and the equity side. In the absence of doing that, one-off measures cannot work.
AKANKSHA SHANU
PGDM-1 SEM.
Banks will find it extremely difficult to reduce base rates, he says. Only PSU banks with large mark-to-market losses are likely to benefit, he adds.
Jahangir Aziz, Chief Economist, JPMorgan, says there are solutions around the current account deficit problem, despite all emerging markets with Current Account Deficit (CAD) starting from Brazil, Indonesia, South Africa, taking a beating in the last 4-5 days. "The government actually has to take structural decisions now to get back structural portfolio flows, both on the debt and the equity side. In the absence of doing that, one-off measures cannot work.
AKANKSHA SHANU
PGDM-1 SEM.
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