General Public Provident Fund (PPF) rates have been dropped by 10 basis points from 7.9 to 7.8 percent for the July-September quarter that would hit the poor people hard in today’s time of rising inflation where the cost of living is going up each passing day but income is declining at every possible opportunity. People invest money in PPF for 15-Yrs and reviewing interest rates on quarterly basis is illogical and sans logic. PPF interest rates should be stable and the government should commit rates atleast for a year so that people can plan their finances in a better manner.
Also, daily changes in fuel prices is an sign of an unstable economy. People too are confused and so are dealers and consumers. Economic policies should average out rates as trade should not be considered on par with ‘betting mechanism’ or stock markets where there is speculation and price changes frequently.
(The views expressed by the author in the article are his/her own.)