Governor’s Master Stroke Defies All Expectations

.....The hike in interest rate was expected as inflation has been stubbornly high. Let us understand why it makes a lot of sense despite high inflation and desperate need to tame it. The primary contributor to price rise is food inflation which has been in double digits for 20 months now. The Achilles heel is vegetable prices, hurting the common man. The other large contributor to inflation has been fuel prices. Yet, the fact is RBI’s monetary policy can achieve nothing as far as food, vegetables or fuel prices are concerned...........

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