This refers to the news report, “Aam admi done in again as RBI tweaks repo rate further” (September 17). The Reserve Bank of India has once again used an old prescription to contain inflation, and increased the interest rates for the twelfth time. Practically speaking, the RBI’s monetary mechanism has fallen flat in containing, let alone curbing, inflation. The lack of a co-relation between the two is puzzling economic pundits as well. In the process, industrial activity has come down because the RBI mops up liquidity from the market in an attempt to bring down inflation. Investment is being diverted from productive sectors into bullion. A jittery world economy is unable to discipline commodity pricing and crude oil prices no more correlate with demand. The latest tightening of rates by RBI can only serve to further disturb market sentiments. What merits serious concern here that is the distributor/retailer nexus which has been leveraging the overall uncertain mood of the economy with predatory pricing. The latest fuel hike that will justify mark-ups to consumer pricing must be seen through this prism, and accordingly action must be taken by the authorities.
The Pioneer
1 comment:
I can hardly choose some words for your commendable efforts. Today’s news items have been posted at 4.30 in the morning, the time when most of us are deep into sleep, you are wide awake, sacrificing your comforts and preparing food for us. It is said that there are some persons who work very hard and there are others who hardly work. I find myself in the second category, while people like you, who start their day at 4 in the morning for the benefit of others, are the one who take the country to the new highs. We salute your untiring contribution.
Mukesh Kumar, AGM, CAB Pune
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