Why the RBI can’t afford cheap money
· thehindubusinessline.com
It encourages leveraged consumption, weakens savings, and worsens external vulnerability. Also, the RBI will have less room to respond when inflation eventually becomes harder to ignore
The RBI’s latest policy decision to hold the repo rate at 5.25 per cent was unsurprising. What is more important is the message embedded in the pause: the cen...