At the press conference held to announce the Reserve Bank of India (RBI) decision to reduce the repo rate - the rate at which it lends money to banks - by 50 basis points, RBI Governor Duvvuri Subbarao faced a tricky question. Did he feel RBI had done its bit, and it was now up to the government to respond adequately to revive the economy? At this, the other senior RBI officials sitting alongside Subbarao burst into knowing laughter. It was apparent the answer was in the affirmative. But obviously Subbarao could not say so. The RBI Governor lost none of his cool. "A monetary easing is a necessary condition, but may not be sufficient for investment sentiments to revive," he said....................
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