What do you do when your cost increases and your growth % reduces ?
That is exactly what RBI indicated last week in their statements for India.
Inflation expectation (rise in living cost) is moved up to 5.7% for FY 22-23, from 5.5% last indicated and GDP growth expected is moved down to 7.2% for current financial year from 7.8% forecasted earlier.
This means Growth pace is expected to reduce directly or indirectly because of input cost increase, which means profitability over all reduces.
At a general level, is this indication on what to do with equity investments?
More so over, interest cost is also expected to increase, so cash / liquidity available will have higher value.
Isn't investing simple?
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