RBI governor calls government's bluff on Re, inflation

A day after India Inc expressed disappointment at the central bank's decision to hold interest rates, RBI governor D Subbarao on Tuesday called for an end to the blame game between the three critical players of the economy-business, the central bank and the government-and underlined the need for them to work together. To deflect the constant demands made on the RBI to address growth issues by cutting rates, the governor instead lobbed the ball back to the government, urging the Centre to reduce fiscal deficit by cutting expenses and bring about reforms in domestic taxation and the foreign investment regime. 

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