Can we expect interest rate cut by CBSL

wiki · 1 Can we expect interest rate cut by CBSL Thu Jul 05, 2012 10:43 pm

wiki

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There is rate cut by three leading CBs.. EU, UK and China due to growth declaration

http://www.bloomberg.com/news/2012-07-05/central-banks-deliver-45-minute-salvo-as-growth-weakens.html

Can we expect interest rate cut by our CB too in near future..

Gainer · 2 Re: Can we expect interest rate cut by CBSL Fri Jul 06, 2012 12:48 am

Gainer

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Cabraal only know what will happen.....

malanp · 3 Re: Can we expect interest rate cut by CBSL Fri Jul 06, 2012 1:55 am

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I dont think so, we always do opposite of what is right.

worthiness · 4 Re: Can we expect interest rate cut by CBSL Fri Jul 06, 2012 12:17 pm

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Policy decision with a view to recoup the market strength has become an obligatory event now. Unless cash sources are available at affordable rate investors are unwillingly to approach the market.
Many investors except the rich class are in tight liquidity situation partly due to impoverished cash circulation.
So authorities should think attentively to maintain the equilibrium of fiscal policies while focusing on enormous corruption & wastage in public sector.

Slstock · 5 Re: Can we expect interest rate cut by CBSL Fri Jul 06, 2012 12:20 pm

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worthiness wrote:
So authorities should think attentively to maintain the equilibrium of fiscal policies while focusing on enormous corruption & wastage in public sector.

SAdly many countries including the likes of USA hasnot concentrated on this aspect. Sri Lanka seems to also compete to the top title ofthis aspect. Mad

Rapaport · 6 Re: Can we expect interest rate cut by CBSL Fri Jul 06, 2012 1:43 pm

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Analysts had warned that the duty hike which disrupts trade will result in lost revenues for the state, expanding the budget gap, requiring interest to rise higher or high rates to persist for longer than necessary.

Read More....

Sri Lanka price of two, three-wheelers cut by India's Bajaj
July 06, 2012 (LBO) - India's Bajaj Auto has cut prices for Sri Lanka between 5 to 14 percent after an excise duty hike in the island slashed sales, which was 17 percent of its total exports, a media report said.

India's Economic Times said Sri Lanka accounted for 5-7 percent of total sales and 17-18 percent of export sales, or 20,000 units a month.
"Post the duty hike, exports to Sri Lanka have virtually been zero with dealers just looking to clear the pending inventory of the products," the newspaper said.

Prices of three wheelers were cut 10 percent and motorbikes between 5 to 14 percent, the report said.

The newspaper said Rakesh Sharma, president of international operations at Bajaj Auto, confirmed that prices were cut, without elaborating.

Prices of Bajaj's motorcycles went up by around 29 per cent and 3-wheeler prices increased by around 32 per cent in Sri Lanka after the import duty hike.

Thought Sri Lanka's rupee fell, the Indian currency has also weakened.
Sri Lanka put in trade controls after loose monetary policy and a steep hike in state credit put pressure on the country's currency peg.

Analysts had warned that the duty hike which disrupts trade will result in lost revenues for the state, expanding the budget gap, requiring interest to rise higher or high rates to persist for longer than necessary.

Slstock · 7 Re: Can we expect interest rate cut by CBSL Fri Jul 06, 2012 2:05 pm

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We know that it will be matter of time before these restriction/taxes will be relaxed . Until such time...

Rapaport wrote:Analysts had warned that the duty hike which disrupts trade will result in lost revenues for the state, expanding the budget gap, requiring interest to rise higher or high rates to persist for longer than necessary.

Read More....

Sri Lanka price of two, three-wheelers cut by India's Bajaj
July 06, 2012 (LBO) - India's Bajaj Auto has cut prices for Sri Lanka between 5 to 14 percent after an excise duty hike in the island slashed sales, which was 17 percent of its total exports, a media report said.

India's Economic Times said Sri Lanka accounted for 5-7 percent of total sales and 17-18 percent of export sales, or 20,000 units a month.
"Post the duty hike, exports to Sri Lanka have virtually been zero with dealers just looking to clear the pending inventory of the products," the newspaper said.

Prices of three wheelers were cut 10 percent and motorbikes between 5 to 14 percent, the report said.

The newspaper said Rakesh Sharma, president of international operations at Bajaj Auto, confirmed that prices were cut, without elaborating.

Prices of Bajaj's motorcycles went up by around 29 per cent and 3-wheeler prices increased by around 32 per cent in Sri Lanka after the import duty hike.

Thought Sri Lanka's rupee fell, the Indian currency has also weakened.
Sri Lanka put in trade controls after loose monetary policy and a steep hike in state credit put pressure on the country's currency peg.

Analysts had warned that the duty hike which disrupts trade will result in lost revenues for the state, expanding the budget gap, requiring interest to rise higher or high rates to persist for longer than necessary.

Rapaport · 8 Re: Can we expect interest rate cut by CBSL Fri Jul 06, 2012 2:10 pm

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Slstock

With the way the govt is borrowing and less than expected state income is not helping the situation.

To me this situation may persist till end of 2012.

CBSL is too stubborn to follow simple rules. They are egoistic and realise their stupid moves too late! CBSL/EPF has never got its reputation battered so badly in the past!

Cheers!

Slstock · 9 Re: Can we expect interest rate cut by CBSL Fri Jul 06, 2012 2:14 pm

Slstock

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Yes
Rapaport , I did not expect that time to come very soon. It maybe even next year. There are other agendas/issues to be fulfilled now before this tax issue is looked at again. However there can be small incentives for special occasions but it may not impact the overall motor industry.

BTW, some people ignore that certain motor vehicles still have tax incentives from the last budget. Wink

Rapaport wrote:Slstock

With the way the govt is borrowing and less than expected state income is not helping the situation.

To me this situation may persist till end of 2012.

CBSL is too stubborn to follow simple rules. They are egoistic and realise their stupid moves too late! CBSL/EPF has never got its reputation battered so badly in the past!

Cheers!

Rapaport · 10 Re: Can we expect interest rate cut by CBSL Fri Jul 06, 2012 2:30 pm

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SLStock

Yes i still see new Mitsubishi Montero Sports being rolled out for permit holders from UML and new Tata trucks and Nano cars by DIMO.

The price of these shares is quite low even if we consider the impact of the duty hike.

I expect easing of the rupee, lowering of interest rates, lowering of fuel prices, small tax adjustments for motor sector, reduction in inflation and popular tax permits being issued in the next 06 - 12 months and this may increase orders especially for UML and DIMO. This may happen or be bolstered by the $ 1 billion bond issue, $400 million IMF handout and potential tourist visits for world cup T20 and Winter season.

Also i hope it rains soon so crops ain't destroyed and inflation remains in check together with CEB generating more electricity from Hydro and cut losses for the govt and reduce CPC burden. Global Oil prices expected to fall next half of 2012. Some global analyst even forecast/predict Oil to go down below $60.

Cheers!