RBI Stance on Monetary policy only to please the Government and the market.

What RBI has done is the best at this juncture.The stance of RBI confirms that inflation is not  rate sensitive and it is futile to enhance policy rates which mean nothing in the prevailing econo- political conditions in the country. RBI has acted intelligently to please the Government  and the market by keeping the policy rates unchanged. This in a way reflects RBI's lack of courage to meet the challenges on inflation and Growth and take on to the Government the real issues that pinch the economy. All said, RBI has a moral responsibility to seriously diagonise the causes for persisting inflation and suggest / come out with a meaningful solution. Inflation continues to be the worst enemy mankind faces and RBI cannot wash of its hands by its jugglery of words and intelligent and diplomatic presentations of policies. The solution in mind to tackle NPA is only an eyewash and it is not sustainable in the long run. 

Dr.T.V.Gopalakrishnan

(This comment is in response to the RBI's Policy that appeared in Business Standard dated 18/12/13)