It’s pretty straightforward: With inflation generalised across sectors, high interest rates are the logical response. »
Given the uncertain global currency environment, there is a genuine need for a proactive gold reserves policy. »
Credit for laying the foundation of the banking sector goes to giants such as Sorabji Pochkhanawalla and Purshottamdas Thakurdas. A new book on India’s banking history tells the story of how they stood up to the government.
The battle against inflation has got to be the central bank’s top priority in a climate of weak industrial growth.
Inflation is too high for a rate cut to seem like a sensible option. The focus must be on increasing savings and reducing CAD.
The Deposit Insurance and Credit Guarantee Corporation, now under the RBI, should not be taken over by the government. And, it need not cover finance companies. »
The Fed’s decision not to taper quantitative easing is all very well. But the RBI cannot afford to loosen monetary strings, yet. »
India entered into bilateral rupee based trade agreements with the USSR and East European countries in the 1950s. It was then felt that these agreements would liberate us from foreign exch...
Raghuram Rajan should remind himself that any significant monetary easing would worsen the current account deficit. »
RBI Governor D. Subbarao did not succumb to the argument that lower interest rates would stimulate growth and lower the current account deficit.