"Policy" in Media - Click on the following links to read more.................
India Inc disappointed with RBI for not cutting rates
India interest rate unchanged on inflation fears
RBI keeps rates unchanged, disappoints industry & stock market
Economists React: RBI Stands Pat on Rates
RBI stuns, keeps rates steady as growth crumbles
Overall inflation a worry: RBI
RBI policy review brings no smiles for borrowers, key rates unchanged
Bankers miffed, but economists hail RBI stance
Rates lower than in 2003-08, other forces impacting growth: RBI
Chambers disappointed with RBI’s monetary stance
RBI was right in not cutting interest rates: Prashastha Seth, IIFL Wealth
It is too early to feel comfortable about inflation: Gaurav Kapur
RBI to government: We’ve done enough, it’s your turn now
RBI's decision disappoints borrowers
Monetary policy: ‘Growth takes backseat, inflation comes to forefront’
Subbarao’s signal: Done enough, time for govt to act
Salaam, Subbu! The Good Doctor gives us a bitter medicine
Perspective: Has RBI left growth to fend for itself?
Why Subbarao told the finmin to take a walk
RBI is so very wrong
Six reasons why Subbarao kept rates unchanged
RBI won’t play to gallery, keeps key rates unchanged
Anand Sharma wants RBI to rethink on rate issue
RBI not touching interest rates shows 'disconnect' with govt: BJP
Gutsy RBI Holds Rates
RBI's communication flip-flop baffles market
Ambit’s Holland Says Lower Rates Alone Won’t Boost India Growth
RBI Hunkers Down
Decoding RBI's monetary policy: the what and why of it
Rationale for status quo
Inadequate response
A do-nothing RBI policy
Missing a ‘rate’ trick
A difficult policy choice
1 comment:
RBI Governor has done the right thing. Not that doing nothing solves any issue. But occasionally, signals like this are necessary to comfort common man who is getting doubts as to whether all institutions are being managed by an assortment of coalition-partners with no elbow-room left for those who are supposed to be in charge of the institutions. The transparency in policy communication which he infused into the monetary policy announcement, it appears, has been taken too literally by stakeholders and has been misinterpreted as a signal to manipulate policy formulation by exerting ‘media pressure’. The increased frequency of monetary policy reviews also is contributing to uncertainties about RBI’s policy stance. Even after factoring in the speed brought about thanks to innovation in procedures and availability of state of the art technology, it takes some time for changes in interest rates or pumping in of additional liquidity(or sucking out excess liquidity from the market) to show results at the ground level. In such a situation, bi-monthly changes in policy stance and lobbying for reversal or further refinements in between, keeps the economy in a perennial mood of anticipation. As is well known, in case RBI is convinced about the need, it doesn’t prevent Governor from using any of the policy tools any time.
It is comforting to find that despite divergence of views at the top and conflicting opinions expressed by top GOI officials and analysts, Dr Subbarao could withstand the pressure and take a balanced view and act accordingly, without deviating from the mandated responsibility of RBI.
M G Warrier, Mumbai
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