USD -INR, Inflation and Fund Rates
The data used in this analysis was sourced via Python libraries such as yfinance, fredapi, and others, with code and modeling support from ChatGPT. While effort was made to process the data correctly, the accuracy, completeness, and timeliness of the data have not been independently verified. This content is for informational and educational purposes only and should not be construed as financial or investment advice.
Investors in equity market (secondary) are quite familiar with averaging practice of prices. When a stock of higher cost was already purchased but the prices drop down, then purchasing stocks at lower prices (must be probable to gain some increment in those latest prices) will average the per unit cost and given increment in latest prices but lower than previous prices till make loss over previously purchased stock lesser loss making. Now, thinking the institutional capacity of banks and financial institutions and production and distribution capacity of national economy, given flood of remittance, there must be a lag in mobilization of funds through banks. Thereby keeping interest rate at lower side till national economy's capacity to produce and distribute gets increased. However, let's imagine a scenario where funds are ever demanded and loans are distributed at higher cost. Deposit rates are increased in the name of liquidity problem or liquidity premium is so high that retu...
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