To boost economy, RBI must work in tandem with Govt

.........The most relevant question today is not whether the Government is disrespecting the RBI’s autonomy or if the RBI should be allowed to take its own considered assessment of the macroeconomic situation — global or domestic — and act as it alone deems fit, in isolation. There are other important questions such as the efficacy of the RBI’s policy stance so far. For example, the rate rising cycle was steep and fast and in a sense inflation has been stubborn and not really responded to the policy actions. And to believe that a more aggressive rate cutting would fuel inflation immensely seems to be farfetched. The RBI cannot stand aloof.........

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