Saturday, September 17, 2011

Central bank backs itself into a corner

As a result, RBI may be forced to deliver another 25 bps of repo rate hike in October, in line with its reaction function that places a high weight on near-term inflation optics. That would be unfortunate, as I think that the prudent course of action for RBI now should be to enforce its stance by way of hawkish talk coupled with a pause.

Read......... 

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