Manohar 2058 days ago

Rajan must be praised for standing his ground despite pressure from the avarcious Corporate lobby,CII, Politicians, Government especially the

Finance Ministry to cut rates. By adopting such a courageous stand not buckling under pressure, he has protected the autonomy of RBI and also raised its credibility in the eyes of the masses that atleast here is one Institution in this Country which inspires confidence. I think all this is due to the efforts of Rajan, a brilliant economist who predicted the 2008 economic crisis before hand. The Industrial lobby and the Government are obsessed with low interest rates as a panacea for all our troubles when salvation lies else where and the economy is struggling with deep structural deficiencies and deficient Institutional frame work. Continous double digit inflation lasting for over five years has hit the poor and neo middle class very hard and made their life miserable not able to make ends meet. The frentic call now raised by the Industrial lobby and the Government for a cut in rates on the back of fall in inflation as measured by index whose credentials are heavily suspect and doesn't impress the commoners who are still struggling with back breaking inflation at the retail level and are left wondering as to why these figures are so much cut off from reality on ground ? I think it would be prudent on the part of RBI Governor to take more time till the base effect wears off to see if this fall in inflation is sustainable.