This refers to the editorial “Inflation warrior” (December 6). Controlling inflation has always been the main concern of the RBI.
On many occasions, the RBI
did not cut repo rate much to the disappointment of the government that wanted the cut to spur growth. This is precisely because the RBI
gave preference to inflation control over growth push. However, in the last few occasions, RBI went for a repo rate cut to address growth concerns.
This time around, with its decision, the RBI wants to assess the impact of stimulus measures announced by the government to revive growth and decide accordingly once the picture is clearer. The editorial rightly sums up that the current pause shows that the MPC will use the available policy space more judiciously. Clearly, the RBI does not want to commit anything as yet.
Sanjeev Kumar Singh, Jabalpur
can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
All letters must have a postal address and telephone number