This is with reference to “RBI will likely wait again’’ (Business Line, December 17). The need of the hour is growth. All the sectors have been showing moderate growth or declining growth rates during the last many quarters. It is time for the RBI to take measures like reducing policy rates to provide a positive stimulus to investors. The private investing community and entrepreneurs should come forward for making investment in productive ventures. This will be possible, provided the RBI Governor reduces the policy rates and the CRR by at least 50 basis points. Hence, the RBI need not wait for the Budget to get a clear picture on fiscal consolidation. Once the growth improves, prices will start falling automatically and inflation will be reined in. However, one should remember that there are various reasons for inflation, apart from increase in money supply.
- Nisha Narayanan (HBL)
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