RBI should avoid a self-goal : Rajeev Malik

The bank risks losing credibility if it cuts rates this week despite rising crude oil prices and uncertainty over fiscal discipline

…..In the background of continued global economic uncertainty, easy liquidity and local political setbacks, the hope is that the RBI would save the day. However, the RBI should stay true to its dharma of delivering sustained low inflation. Such an outcome will require it to avoid cutting interest rates this week despite the deceleration in fourth-quarter GDP growth to 6.1 per cent year-on-year – which is nearly a three-year low – and some tentative softening in inflation……..

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