Memo to RBI: Only shock therapy will work from now on

 Over to you, Dr Subbarao.................

When Reserve Bank Governor D Subbarao takes a view on interest rates next week in his mid-quarter monetary policy review, he should know that no matter what he does, growth will not revive and inflation will not come down. Unless he decides to go in for shock therapy, which he has been loath to do so far. If anything, he has been willing to wound, but afraid to strike. And by shock therapy we mean he should either cut rates significantly, or do the opposite – say, by, one or two percentage points immediately. This would be shock therapy, not a 25 basis points cut or status quo on repo rates. That would be neither here nor there.......

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