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Friday, Jul 29, 2005


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Monetary policy

The first quarter review of the Monetary Policy announced by the Governor makes for interesting reading. The assessment of the developments in the domestic and external sectors is well balanced and found to be realistic.

The yuan's recent revaluation, though only at a moderate level, could tilt the whole international movement of currency which may have a positive impact on the price of oil, which will perhaps favour our economy. The present approach of the reserve bank of India to maintain status quo in its monetary policy is more appropriate and good for the economy given the present scenario.

T. V. Gopalakrishnan

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Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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