Budget 2012: Do we need a 1990s crisis to shock us into reforms?

…..There is some hope that the RBI will cut rates in April. But with such a deficit, high global liquidity and so much left to be done to correct administered prices, it is tough to expect the RBI to oblige. Deputy Governor Subir Gokarn may have sounded appreciative of the government’s tax increases to bridge the deficit, but if month-on-month core inflation rises, as it well may, the RBI may find itself postponing the much awaited rate cut........

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