Thursday, October 25, 2012

Why a rate cut by the RBI will help in growth revival

We are at a juncture where complementary and coordinated action is required from fiscal and monetary authorities. They must signal cooperation.

On the eve of the mid-year review of monetary and credit policy, the Reserve Bank of India (RBI) once again finds itself in an unenviable situation. Signs of growth weakness are everywhere, but signs of inflation abatement are not as widespread. Hence, it has to tread narrowly in that policy alley, without disturbing optimistic developments on both sides...........


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