.... Is there a disconnect between how RBI Governor D. Subbarao and his deputy Subir Gokarn perceive things? For instance, Gokarn gives the impression that the recent cut in CRR is to manage liquidity and there is no change in RBI’s anti-inflation stance, but Subbarao hints at a shift in stance. Similarly, while the governor is ready to wait and watch how the CRR cut—that released Rs.32,000 crore into the financial system—impacts liquidity before resuming RBI’s bond buying programme, Gokarn gives the impression that the central bank will continue to buy bonds to infuse liquidity.
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