“Interest rates were kept unchanged ad that was
expected. I was expecting the CRR to be cut by 50 basis points looking at the
liquidity situation. The decision has been contrary to what Brazil and China
has done. To my mind growth will not happen merely by monetary policy it has to
happen from the policy front and that has to come from the government. To
my mind interest rates would have a very low bearing on growth at the current
stage of the Indian economy.
To my mind the stance that RBI has taken will not
result in reducing inflation but it will have an indirect effect of reducing
consumption of goods, mark me, not consumption of food. This is very
important for India as we cannot afford to waste money on consumption.”
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