........it is encouraging to note that other analysts have also picked up on this theme, that the signature of the present RBI is that it not only indulges in obfuscation (which is good for a central bank) but also bundles itself into contradictions, and the changing of policy goalposts, which is a real bad. And bad because it severely erodes the RBI's credibility. We have a new addition to the ever-increasing set of goalposts of the RBI............
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1 comment:
The writer Mr. Bhalla has successfully demonstrated what obfuscation (the art of obscuring, confusing mind) can be at its worst. Some use words which are a little tough to escape scrutiny. Whatever be the other shortcomings in RBI’s policy formulation, the period of RBI’s articulation of policy during Dr Subbarao’s tenure has been the most ‘transparent’ and backed with rationale for the approach accepted at every stage. Perhaps January 29 Monetary Policy statement was an exception of sorts. For this, reasons are not far to seek. By the graceful action of reducing repo rate and CRR by a 0.25 percentage point, perhaps the Reserve Bank of India ( RBI) was probably trying to break the stalemate in governance in the financial sector caused by the finance ministry and the central bank, giving an impression that there was more than the permissible levels of “give and take” between them. Let us believe that RBI and GOI are on the same page.
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