What will RBI manage to stop-growth or inflation?

If RBI’s decision to hike policy rates by 25 bps in the face of steadily deteriorating local growth conditions—and worse to follow, given the fact that the European crisis is still far from resolved—was inexplicable, the government’s actions are even more curious. And very clearly show the government and RBI are working at cross-purposes. As a newspaper, we have been in favour of eliminating petroleum subsidies since they put an exceptional burden on PSU oil companies and, apart from restricting their investments, they also drove out private players like Reliance Industries and Essar Oil.

Read Full Story>>