COVID and its aftermath led to govt killing the saver with negative interest rates and worse prices of everything/ daily commodities / basics etc shot up by a minimum of 5% to 10% .. worse the UKRAINE WAR has increased inflation by another 10 to 15 % the difficulty as commodities such as Wheat and OILS have shot up as has cost of fuel gas , petrol diesel etc.
Savings bank gives 3.5 % if ur lucky fds give u 6% seniors get 6.5%. A Vadapav which cost Rs 10 now costs 15 to 25. Even AMUL was forced to up milk costs by Rs 1 / 2 .
The State Govts and Centre has increased inflation by increasing fuel tax during covid time. RBI has done nothing to deal with inflation,, It created very ultra easy liquidity policy post covid..Govt data Inflation is much above RBIs own stated comfort zone. The bond market has been signaling massive inflation for some time now as ET on apr 4 headlined : 10-year bond yield to soon cross 7%; bloodbath in market shows struggle with supply..
Elevated crude prices , commodity prices and a massive govt borrowing program can be a recipee for disaster especially for the non pension retiree and saver who depends on fds as incomes have crashed.
“The 10-year benchmark paper should be around 7-7.25 per cent, possibly by the end of this month as the borrowing in the first half is definitely higher than what the market had expected,
On 4 May, the Reserve Bank of India (RBI) shocked both the stock and bond markets by raising the repo rate by 40 basis points (bps) to 4.4%. This was an inter-meeting hike. and this is not going to change anything Is it too little too late ?
Tech and Trek 