This year will see an unprecedented inversion in the sequence of Budget and annual Credit Policy
.......However the date for RBI’s annual monetary policy is March 15 (as of this writing). Hence apart from clever economic models and analysis, the RBI will also have to exercise clairvoyance and mind-reading to be able to come up with a policy that is consistent with the fiscal stance, which will be revealed only 24 hours later. (Who knows, there may be several roll-backs of budget proposals too!) Hence there are three possibilities: (a) monetary policy date will be postponed; (b) RBI will have secret advance insight of the Budget (dangerous! and possibly illegal); or (c) RBI will fly blind. Interesting times ahead for monetary and fiscal policy tango......
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