Rate hikes not a history

The country was celebrating the decline of commodities like crude over the last few days. The reduced prices were a direct result of the change of the aaa rating of the us government.

The reduced prices of commodities even prompted the government to talk of fuel price reduction.
The industry analysts and everyone were talking of the fact that the rbi would be forced to consider the fact that growth was slowing down and that inflationary pressures would soon slow down.

However, soon after the commitment of the fed that they would not raise for the next two years, and that qe3 is a possibility , the situation has changed.

Crude has come back up and the commodities are back on an uptrend. Gold had a sell off from 1800 to 1745.

With all of this, rbi has reiterated that inflation is still the primary focus.

I dont think that the rate cycle has peaked. We may still see some further ones, as inflation doesn't seem to be coming down at all.

With the lack of focus of the government to increase the supply side , we should be prepared for a big slowdown in the economy.

Not a happy situation at all.

Focused investing time.

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