Apropos “Monetary policy isn’t a popularity contest” (June 13), rate cuts alone are not a remedy for slowing growth. Growth is a function of an effective and a proactive policy mix — monetary as well as fiscal. It is erroneous to hold high interest rates responsible for the slowing growth rate. In the absence of investments and productivity-led fiscal initiatives by the Centre, monetary manoeuvres of the Reserve Bank of India (RBI) will remain ineffective. We need to boost investor sentiments and focus on productivity growth.
Venkatesh N Hubli
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number