U.S fed is looking to cut the CRR rate by a minimum of 25bps to 1.25, the rate cut can also be upto 50 bps, this is to spur the economy. Because of the recent economic crisis the oil prices have dropped and the inemploymeny in the US has increased to a record high of 6.5% and expected to touch 7.5% by the year end.
with the christmas season coming the economic downturn is going to effect the company revenues and the growth of the country. This festival season as experienced by the Indian diwali which was a mere mediocre in the celebrations because of the soring prices and the economic uncertainity.
The Standard & Poor's/Case-Shiller 20-city housing index released Tuesday showed a drop of 16.6 per cent in August from the year ago, the largest on record going back to 2000. The smaller, 10-city index, fell 17.7 per cent, the biggest decline in its 21-year history.
The fed cut is also expected to spur rally in the oil prices, with the OPEC cutting the production and planning to cut production further. According to me the oil prices are to stabilise around $75 by the year end.
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