Govt's stimulus package not enough - Edelweiss
Edelweiss said that govt's plan to spend an extra $4 billion over the remaining fiscal year would only have a limited impact in boosting growth as the stimulus package is small.
The government's plan to spend an extra $4 billion over the remaining fiscal year would only have a limited impact in boosting growth as the stimulus package is small, Edelweiss said in a note on Monday.
"Over the next six months RBI would have to ease the reserve requirements (both cash reserve ratio and statutory liquidity ratio) significantly also to ensure adequate growth in money supply and credit in the economy," the brokerage house said.
The Reserve Bank of India on Saturday cut both its key short-term rates by 100 basis points each to boost economic growth in the wake of a global credit crisis and recession in some major economies.
The repo rate is now at 6.5 per cent, and the reverse repo rate has been reduced to 5 per cent, its lowest in more than three years.
"Over the next six months RBI would have to ease the reserve requirements (both cash reserve ratio and statutory liquidity ratio) significantly also to ensure adequate growth in money supply and credit in the economy," the brokerage house said.
The Reserve Bank of India on Saturday cut both its key short-term rates by 100 basis points each to boost economic growth in the wake of a global credit crisis and recession in some major economies.
The repo rate is now at 6.5 per cent, and the reverse repo rate has been reduced to 5 per cent, its lowest in more than three years.
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