…..Having boxed itself into a corner, the government has no option but to use Budget 2012 to begin a long-term process of fiscal consolidation, without which – as the RBI has warned – the interest rate cuts that are needed to revive growth stand no reasonable chance. The RBI’s 75 basis point cut in Cash Reserve Ration on Friday effectively puts off any decision on rate cuts until after the budget; that decision will hinge critically on whether the government lays out a credible path towards taming subsidies and generally bringing its deficits under control……
Read.........
No comments:
Post a Comment