Business Daily from THE HINDU group of publications
Monday, Oct 27, 2008
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Monday, Oct 27, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Money & Banking
-
RBI & Other Central Banks RBI policy just a strategic pause, say economists The focus should now be on limiting the impact of the severe global financial crisis on the local system as evidenced in the plummeting rupee. Our Bureau Thiruvananthapuram, Oct. 26 The Reserve Bank may have been merely striking a strategic pause on Friday before it chose to engage the CRR-SLR levers ‘as early as the next few days’, says Mr Abheek Barua, Chief Economist, HDFC Bank. The decision to stand pat after cutting repo by an unprecedented 100 bps was a bit confusing. It was imperative to be seen as doing something and that explains the rhetoric on growth, inflation and rates. But this has lost relevance with the regulator making its (accommodative) stance abundantly clear through earlier moves. The focus should now be on limiting the impact of the severe global financial crisis on the local system as evidenced in the plummeting rupee. According to Mr Ananda Bhoumik, Senior Director, Fitch ratings, the RBI posture could barely hide the fact of its thunder having been stolen thanks to the pre-emptive repo rate cut. But banks seem to have selectively taken the cue to announce cut in lending rates, which is just what the regulator ordered. It is still too early to take a call on what it chooses to do next, though. Monetary policy levers don’t work during these times when ripples of a global recession are lapping against the country’s shores, according to leading economist Prof Prabhat Patnaik. “We should look at spurring demand and stop worrying about fiscal deficit,” says Prof Patnaik, the only Asian member on a UN General Assembly high-level task force headed by Nobel laureate Prof Joseph Stiglitz for suggesting reforms to the world financial order.
‘RBI has sent out right signals with repo rate cut’ ‘Welcome measure’ More Stories on : RBI & Other Central Banks | CRR & Bank Rates
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2008, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
