Wednesday, November 13, 2013

Inflation-fighting lacks commitment...


Article;
Bonds, rupee recoup losses after pep talk from Raghuram Rajan.

Comment;
Rs 8000 crore for bond purchases and we are not expecting inflation... What the FED (US) is doing...? It is doing the same thing and is expecting inflation to break liquidity tarp... The US bond purchases and the INDIAN bond purchases are the same type of quantitative easing methods except that the FED is printing money and the RBI is loosening its reserves. Why we are not expecting inflation??? The right thing to do is to sell bonds and not purchase of it... Back in 2011 the RBI loosened CRR two-three times which pushed back high the falling inflation... We are using half-hearted measures to control both demand and supply to rein-in inflation... The commitment to reduce inflation is too flexible...

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