Sunday, March 11, 2012

Subbu Sab jaanta hai, part 2: Why RBI Gov did what he did

……..Subbarao knows that he cannot relax his vigil on inflation. The pyrotechnics on CRR are intended to make up for slowing down on repo rate cuts. So forget about a 50 basis points cut in repo on 15 March. Be happy if he even does 25 bps – just to keep the FM happy. And don’t count on too many more cuts to follow. Subbu is no wimp on inflation.…….

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