Banking and Financial News – 16 May 2014

Exporters Unhappy With Rupee Rally, Seek Intervention: Industry Body (NDTV Profit) - A recent rally in the rupee against dollar has made a section of exporters unhappy, as strengthening of the local currency makes Indian exports "uncompetitive" in the global marketplace, the Confederation of Indian Industry (CII) said on Thursday.

Interest Rate is the best tool for RBI to control inflation (The Hindu) - RBI Governor Raghuram Rajan said the “best tool” available with the central bank to control price rise was Interest Rate. He said that the government too had tools such as increasing agricultural production and improving supply.

Important Financial Terms in the News explained.

Inflation is an increase in the price of bunch of Goods and services that projects the economy. An increase in inflation figures occurs when there is an increase in the average level of prices in Goods and services. Inflation happens when there are fewer Goods and more buyers; this will result in increase in the price of Goods, since there is more demand and less supply of the goods. Classic definition of Inflation is, “Too much money chasing too few goods.”

No amount of guilt can change the past and no amount of worrying can change the future. ~ Anonymous

Courtesy : NDTV Profit , The Hindu