Tuesday, August 5, 2014

Inside Governor Rajan's mind

..............The RBI could have tightened further and then subsequently eased, but it appears to prefer - correctly, in my view - an extended neutral stance. The recent decline in the benchmark 10-year government yield because of the issuance of a new benchmark shouldn't be taken to contain any signal about the RBI's monetary stance. Unlike the June policy statement, Tuesday's review will also be complemented with a media interview with the RBI Governor Raghuram Rajan and his team, and a conference call with analysts. Consequently...........

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