Growth is not in RBI’s hands; but a short rally is possible

.....In India we have the Reserve Bank standing alone trying to fight inflation with tight money, on the one hand, but on the other hand, deficit financing by the government loosens money supply. Then we have the government refusing to deregulate and create growth that could not only lick inflation but cut deficits through increased tax receipts. So as one looks at the RBI for relief, don’t expect anything that will give investors the confidence to take a long term view of the economy.........

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