Why Rajan deserves AAA for a non-event policy - Latha Venkatesh
........For the moment, the RBI has been able to buy peace with the government, probably because the government too has realized the political risk of high inflation. I am not completely sure the uneasy truce will continue. In a late night statement, the finance ministry welcomed the RBI cutting SLR and making room for growth. But this is how the statement ended: “The Ministry further states that going forward, the RBI should examine the liquidity situation, inflation and growth in setting policy rates.” Now is this evidence of the finance ministry baring its fangs? Or of giving direction to the RBI?
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