Thursday, January 31, 2013

RBI rate cut is a washout

....... The Reserve Bank of India (RBI’s) policy response has been based on the assumption that inflation has moderated. Or, should we say the banking regulator has finally succumbed to the pressures of New Delhi? The cornered RBI has had to acquiesce during one quarter or another. To be fair to the monetary authority, how long can it hold on to the government’s pressures? ................

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