RBI can’t deny rate cuts for long

The Reserve Bank of India’s (RBI) strong anti-inflation rhetoric, after it decided to hold policy rates steady in June, has led to a toning down of expectations from the monetary policy review in July. To an extent, the markets have moderated their expectations of monetary easing over the remaining months of FY2013 as well. I, however, feel that given the widespread weakness in the economy, internally RBI must be in a far bigger dilemma than what recent public statements suggest. 

Read Full Story>>