In a bid to check inflation, Reserve Bank today raised its short term lending (repo) rate by 50 basis points to 7.25 per cent, while lowering the economic growth projection to 8 per cent for the current fiscal. The RBI has also increased the saving bank rate by 50 basis points to 4 per cent to give higher returns to depositors in the wake of high inflation.
RBI Governor D Subbarao announced these measures as part of annual credit policy to contain inflation, which is hovering around 9 per cent, and sustain economic growth in the medium-term.
RBI has pegged GDP growth rate for the current fiscal at 8 per cent against the government’s projection of 9 per cent. The economy grew by 8.6 per cent in 2010-11.
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TO QUICKLY REACT: IT IS NOTHING BUT MARKED BY ‘EMPATHY’;THOUGH FOR WRONG REASONS.
TO ELABORATE:
AS COMMONLY NOTED, THERE HAVE BEEN ANY NUMBER OF – DECISIONS TAKEN OR DIRECTIVES OR RECOMMENDATIONS ISSUED/MADE TO ITS CONSTITUENTS BY THE RBI, IN RECENT MONTHS, SPORADICALLY AND SEEMINGLY IN AN IMPULSIVE FASHION; THAT TOO SO FREQUENTLY BUT WITH VERY SHORT BREAKS.
TO A COMMENOR’S MIND, THE POINTS OF POSER THAT ESSENTIALLY CALL FOR AN INCISIVE INQUIRY AND TRUTHFUL ANSWERS OR SOLUTIONS ARE THESE:
WHY THE RBI BELIEVES THAT ITS STEPS SO TAKEN ARE GOING TO HELP AT LEAST TO SOME EXTENT IN –
1. COMBATING THE WORRYSOME INFLATION OR ACCOMPLISHING ITS DECELARATION; AND
2. WHAT IS REALLY MEANT OR AIMED AT BY THE ‘GROWTH IN ECONOMY’ ,
OR SHOULD THAT BE THE THE ONLY OBJECTIVE REGARDLESS OF THE OTHER MORE IMPORTANT CONSIDERATIONS , SUCH AS – THE LARGER ‘PUBLIC INTEREST’/ ‘ SOCIAL WELFARE’ ;
OR, IN ANY CASE, SHOULD/COULD IT BE RATHER AT THEIR COST, IN A WAY TOTALLY SACRIFICING THEM AT THE ALTAR OF THE NATION.
WHILE THESE ARE MEANT TO BE TAKEN AS COMMON REACTIONS, IT IS FOR THE SO CALLED ‘ECONOMISTS’, THE TODAYS’ ACCLAIMED ELITE OR CREAM OF THE SOCIETY , TO PONDER OVER AND COME OUT OPENLY WITH THEIR WELL-CONSIDERED but indepenent and impassionate VIEWS ON SUCH OR OTHER RELATED POINTS.ALSO TRY AND SEE WHETHER THE RBI COULD BE MADE TO ACKNOWLEDGE, TO THE END OF MENDING ITS WAYS.
vswami