The Hindu Business Line : Wednesday, April 25, 2007

CREDIT POLICY
ANNUAL STATEMENT ON MONETARY AND CREDIT POLICY 2007-08
RBI restrains to surprise
The expectation had been that the RBI would be `tough-minded' and tighten the policy a little bit more. The very fact that Dr Y. V. Reddy has not done so and kept the policy rates unaltered, including some bows in the direction of external rate l iberalisation, shows that he is responsive to the point of view that growth is important, says S. VENKITARAMANAN. More

Hands-off, deliberately
The RBI has not, rightly, touched any of the policy rates but it is quite inexplicable that it should be projecting 17-17.5 per cent rise in money supply even as the economy is drowning in liquidity. More

Opening door wider for MFs
As the RBI unveiled the Annual Credit Policy statement for 2007 - 08, it once again emphasised price stability and, therefore, inflation. The Policy focuses on maintaining growth momentum of the economy after placing safeguards against ... More

Growth wins over inflation
Contrary to the market expectation, but rightly so, the Reserve Bank of India has kept its key policy rates unchanged. It has laid greater emphasis on price stability and also renewed focus on credit quality and orderly financial market condition ... More

Lull before the storm
The Policy can be viewed as a form of consolidation before tightening measures are re-introduced in case the rigorous new inflation target is not met. More

Living with `impossible trinity'
The surge in capital flows has complicated monetary policy management and the RBI seems to have decided to tackle the menace over time by balancing it through capital outflows. More

An attempt at fine-tuning
Rather than act now and overcompensate, the RBI is attempting a more fine-tuning of the policy. This is indeed welcome. More

No bark, no bite, only CAC
It would be incorrect to ask "where is thy sting" to the Governor, since yesterday's inaction was rather strategic. More

Emphasis on managing currency overvaluation
A number of measures are geared to increasing outbound capital flows through enhanced capital convertibility. More

Leaving room for future action
The thrust of the Credit Policy has been towards imparting greater flexibility in the financial markets by further development of the market infrastructure. While the Annual Policy has left the rates unchanged for now, we believe that with an ... More