......There was one important person who did not share the euphoria. RBI Governor D Subbarao, the man in charge ensuring price stability, growth and financial stability (including currency stability). The central bank has its ears closer to the ground and is any day a better judge than any of the other financial market participants, both public and private. A veteran central banker Subbarao has experienced many such ‘flash in the pan’ movements and knows its end results. Like a seasoned banker he has chosen his words well when he highlighted these concerns in his Second Quarter Monetary Policy statement where he said ‘Domestically, a revival in investment activity, which is key to stimulating growth, depends particularly on the recent policy announcements by the government being translated into effective actions.’ In other words what he is telling the government is announcements are fine, but you need to convert them into action......
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