It is troubling that from talks of double-digit growth, we have, now, lowered our expectations to seven per cent. This, despite the fact that we have some of the best minds in economics running the country. Considering the present economic situation and the decline in industrial output, the Reserve Bank of India has indeed made the right move by cutting the cash reserve ratio by 50 basis points and keeping repo and reverse repo rates unchanged for the time being. The move will provide some relief to India Inc that has been under immense pressure owing to the rising cost of funds. Ultimately, the central bank has to maintain a balance between growth and controlling inflation and it has made an effort to do so.
Bal Govind Noida
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