'Monetary policy is a sentiment booster’

The RBI’s monetary policy for 2012-13 is a sentiment booster, according to an economist. Terming it as a positive surprise, Dr Biswa Swarup Misra, Associate Professor, Xavier Institute of Management, Bhubaneswar, told Business Line that before the policy, the expectations were that it will be a 25 basis points cut or the rates will be kept unchanged. “Now, the RBI has gone for a 50 basis points repo rate cut. If not anything, it will act as a sentiment booster,” he said...........

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