This is with reference to the editorial “One-trick pony” (Business Line, October 26). It is aptly said that sometimes non-action is a sensible action. But a moot point is if non-action by the RBI at this juncture would be beneficial to the economy. Certainly, the present hike in interest rates will have its impact on economic growth. But RBI has no choice, but to resort to this unpleasant action, keeping in view the present stubborn high inflation rate. Of course, increase in the MSP rate is unwarranted, and will fuel further food inflation.
K. N. V. S. Subrahmanyam (HBL)
