Thursday, March 15, 2012

RBI credit policy: Central bank stuck in damage control mode

……….For the RBI, 2012 is shaping up as another year of damage control for a populist government's excesses rather than pursuit of its own priorities of boosting investment and containing inflation. This could leave the economy trapped in an unhealthy confluence of high inflation and slowing growth, with little the RBI could do -- other than easing bank funding -- to encourage investment or to direct cheaper money to the most stressed parts of India's supply chain.……………..

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