It is true that the Reserve Bank of India (RBI) has to address the GDP growth fall but it will have to be allowed to do so in a manner that is not disruptive. The sharp fall in fourth quarter GDP growth to 5.3 percent against market expectations of 6.1 percent places an additional burden on the RBI Governor D Subbarao. The central bank is fighting inflation, the rupee’s fall, liquidity and government borrowing. The below-trend GDP growth has all and sundry clamouring for the RBI to ease monetary policy. The fact is that the RBI cannot just focus on easing policy to raise GDP growth expectations. Every action of the RBI will have an effect on one macro factor or the other and the RBI has to do a fine balancing act. Hence it is advisable to stay off RBI and let its do its job.....................
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