The monetary authority should consider instruments other than interest rates to control money supply, disinflation, »
In policy making, targeting inflation can be the anchor. There is still some reluctance on the RBI’s part in shifting to CPI vis-à-vis WPI. »
As in 1991, a foreign exchange immunities scheme for NRIs that does not dig into antecedents will help our cause. »
The central bank has done well to take a serious view of inflation. However, it should be just as serious about mopping up forex to prepare for an eventual QE withdrawal. »
By hiking repo rate and pruning marginal standing facility and daily CRR requirement, the RBI Governor seeks to reconcile inflation and growth objectives.
The RBI cannot afford to brush aside price rise, while addressing growth. »
Its Annual Report could have spelt out the implications of an independent debt management office and offshore banking units. »
We are better off than in 1991. Capital controls should be seen as a temporary measure to tide over the current crisis rather than our going back to an earlier era. »
The RBI has got it right. It should be thanked for not upsetting the apple cart with further measures. »
The recent measures to absorb excess liquidity were necessary but not sufficient.