FinMin Not too Hopeful of RBI Lowering Rates...... Page 1, The Economic Times 29th Oct 2012.
It says with inflation still high Subbarao may not want to cut rates just yet. Need to know if the RBI Governor's role is merely to increase/decrease rates and CRR. It would have been better if Economists occupying this position are more pro-active. The better way to tackle inflation is to increase production. The first being Food Production. What is the Yield per Acre, and what reaches the Market place or the Dining Table. Bottlenecks are next identified. Support systems created through local Bank's intervention and solutions found. Similar with Clothing and Accommodation. Once the Three Basic needs are met, rest are all incidental. This is where the Governor can guide Banks to act, and not focus on only Industries and ROI etc.
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