Monday, July 30, 2012

Coping with the unknowns

The central bank is likely to wait for an end to policy paralysis - just like everyone else
......In the circumstances, does the RBI hike rates (and/or CRR), stay put, or cut? A hike is very unlikely. Cuts, if they happen, are likely to be nominal. Though the RBI can do nothing about food prices, it could be arm-twisted to keep rates high due to monsoon failure.......

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