The Hindu Business Line : Wednesday, April 19, 2006

An exercise in political economy
Until such time that we have a legally or, even better, a constitutionally-guaranteed autonomy of the central bank it has to walk the tightrope, of satisfying the politician and still performing according to its dharma. More

MONETARY AND CREDIT POLICY
A vote for growth
How the Governor's latest Monetary Policy statement will pan out depends very much on the international and domestic developments, including crude oil prices and the domestic political situation. Hopefully, the Governor's expectations of a smooth rid e for India will come to pass, says S. VENKITARAMANAN. More

A thrust on credit risk sensitivity
With a thrust on `credit risk sensitivity' and `financial stability', the emphasis of the policy is more on structural measures rather than on regular monetary instruments. With a thrust on `credit risk sensitivity' and `financial stability', th e emphasis of the policy is more on structural measures rather than on regular monetary instruments. More

Going towards growth
The `no-rate policy' does not in any way mean that the rate hike cycle is over. The RBI would be ready to act in a timely and prompt manner if inflationary expectations turn adverse. The `no-rate policy' does not in any way mean that the rate h ike cycle is over. The RBI would be ready to act in a timely and prompt manner if inflationary expectations turn adverse. More

What we sought and what we got
The new measures introduced are useful for an orderly development of the financial markets. The new measures introduced are useful for an orderly development of the financial markets. More

For financial stability
The Credit Policy statement comes amid mixed trends. While inflation is soft at 3.5 per cent, economic growth remains buoyant, along with robust monetary expansion and credit growth. The banking system is once again experiencing adequate ... More

Focussed measures
With most other central banks primed to raise rates, it is unlikely that the RBI can stave off pressures to hike rates. With most other central banks primed to raise rates, it is unlikely that the RBI can stave off pressures to hike rates. More

A good balancing act
Overall, the credit policy strikes a good balance between sustaining rapid economic growth while keeping control of inflationary pressures. Overall, the credit policy strikes a good balance between sustaining rapid economic growth while keeping control of inflationary pressures. More

Controlling credit
The signals are therefore clear — that the RBI wishes to keep credit growth in check, particularly, to those sectors it sees as "sensitive". The signals are therefore clear — that the RBI wishes to keep credit growth in check, parti cularly, to those sectors it sees as "sensitive". More