With the govt failing to rein in the fiscal deficit, RBI may think twice before agreeing with suggestions of a rate cut
Should there be close coordination between the fiscal policy authority, the Union finance ministry in New Delhi, and the monetary policy authority, the Reserve Bank of India (RBI) in Mumbai? Yes, in the normal course, there should be close coordination between the two authorities. This, of course, should be without any one of them undermining the independence of the other. The economy and all economic entities will gain if the finance ministry and RBI were to see eye to eye on what needs to be done to achieve higher growth with low and stable inflation.............
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