Fairval

Notes on Indian equities, sectors and economy

RBI does the right thing – killing inflation is more important

Posted by fairval on June 18, 2012

So RBI has left rates unchanged. The market rose last week pricing in atleast 25 bp repo rate cut. Indices are down now.

RBI has done the right thing – killing inflation is more important, that trying to bolster growth. This blog had said the same thing in the May 28 post on rupee depreciation

Rupee depreciation – not as bad as it looks

The govt may have wanted a cut, but just last week the FM was saying – we are growing at 6%+ where is the slowdown? Why is S&P berating us if we are still among the fastest growing economies?

We really are in a policy bind, there isnt much the government can do to make growth return. It can do some big bang stuff on FDI, but doesnt have the intent, or the parliamentary numbers to do so.

Meanwhile, good riddance, Pranab. May he be remembered as the man who screwed the India story (in cahoots with Sonia, of course)

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