https://www.taxtmi.com/article/detailed?id=1377 The Reserve Bank's interest rate hike tightened credit by prompting banks to raise loan and deposit rates, increasing borrowing costs and compressing demand. While intended to check inflation, the measure has limited effect because supply side price increases persist; consequences include higher EMIs, reduced demand for housing and automobiles, stress on loan portfolios and potential deterioration in banks' asset quality, highlighting a trade off between short term growth and inflation control. en-us Thu, 04 Aug 2011 00:00:00 +0530 Wed, 03 Aug 2011 22:23:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1377 The Reserve Bank's interest rate hike tightened credit by prompting banks to raise loan and deposit rates, increasing borrowing costs and compressing demand. While intended to check inflation, the measure has limited effect because supply side price increases persist; consequences include higher EMIs, reduced demand for housing and automobiles, stress on loan portfolios and potential deterioration in banks' asset quality, highlighting a trade off between short term growth and inflation control. Articles Other Topics Thu, 04 Aug 2011 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=1377