“Wrong approach to inflation” (Business Line, September 24) indicates the failure of the RBI in taming inflation. For the past two years, the RBI has been changing the interest rates and repo rates to curb inflation but there has been no significant impact on inflation. It is high time we realize that the concept of interest rates is slowly losing its hold on inflation. Now, many market forces such as the black market, future trading, artificial demand, increase in income levels etc., will have a direct impact on inflation. Hence, the RBI should reinvent new measures to curb inflation.
Srinivas Vissapragada, Andhra Pradesh (HBL)
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