Inflation

June 17 , 2011 ,13:51 IST


The hike of 25 basis poins effected by the Reserve Bank in REPO, Reverse Repo in its policy announcement is a clear indication that Inflation needs to be contained at any cost even at the cost of growth.Though the needed support from the Government through its fiscal and other administrative policies to contain inflation has not been forthcoming,the Reserve Bank seems to have decided to fight the battle lonely and the measures taken are appropriate. The signal is clear and it is for the users of credit to minimise their cost of production without necessarily passing on the additional burden to consumers.The editorial is very apt and provides the message.

This comment appeared in e-business standard on 17th June 2011

T.V.Gopalakrishnan