....The question for many is: what will the policy response be to this full-fledged crisis in manufacturing? Those who argue for a response from the Reserve Bank of India (RBI) are likely to be disappointed. Manufacturing inflation may have fallen, but consumer prices are still increasing at a rate way out of the RBI’s comfort zone. On Friday, inflation numbers will reveal whether the consumer price index is in double digits or not. Meanwhile, RBI Deputy Governor Subir Gokarn has already dismissed concerns about liquidity. Global influences on monetary policy, too, point in the direction of steady domestic interest rates.....
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