The announcement of policy rates hike for the tenth time in the last 16 months appears to be a mockery and a one-sided show in addressing inflation. The government has once again set aside the tools of fiscal measures, leaving the issue with the Reserve Bank of India to proceed with the single-point agenda of rate hike. It is not known whether the government is honest in sticking to the 8.5 per cent growth projection, as the rate hike is likely to affect the production side. The present inflationary trend has reached near double-digit levels. The government should own up the responsibility and proceed with tight fiscal measures, instead of remaining as a spectator and allowing the RBI to continue hiking rates.
C. P. Velayudhan Nair (Business Line)
No comments:
Post a Comment