The article has brought out well about the need for RBI not to fall prey to the pressures of politicians,industrialists, and top Govt officials to reduce the policy rates. The economy is in fact in reverse gear and in case the RBI decides to change the policy rates as wanted by all including the bankers, neither the economic growth nor the price stability can be achieved. It will worsen the situation and damage control will become a difficult tasklater on and more than anybody the masses will suffer.The inflation, the ccurrent account deficit, the fiscal deficit, the GDP growth, the severe fall in exchange rate, poor flow of both FDI and FII funds, loss of confidence in attracting foreign funds thanks to retrospective changes proposed in some of policies relating to tax on international investments etc are not favourable for investment and growth in the near future, the Reserve Banks' policy is the only hope left to put the economy on right and growth track. Will RBI heed to the requirement?
from: Dr.TV. Gopalakrishnan
(This comment is in response to an article in ET dated 6/04/12)
Posted on: Apr 5, 2012 at 22:28 IST
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