• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books
• Gallery

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

This is with reference to the article “Inflation, rising rates and financial repression” (Business Line, July 17).

Although the fiscal deficit is quite worrisome, there is no justification for raising interest rates since the credit off-take has just started to go up and the abject need of the hour is a rapid completion of projects, especially those that create employment. The government should encourage deposit of domestic savings and investment in equity by retail investors.

The Centre should issue guidelines to States to reduce fiscal and to avoid populist measures to prevent build-up of deficits.

T. R. Anandan e-mail

More Stories on : Letters | Interest Rates

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line