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<b>Letters:</b> RBI's status quo

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Business Standard New Delhi
Last Updated : Sep 17 2014 | 9:45 PM IST
Apropos the editorial "Sustainable relief?" (September 17), while there may be calls for the Reserve Bank of India (RBI) to lower policy rates, there are many reasons not to. First, lowering interest rates may have an adverse impact on debt inflows, given the US Federal Reserve policy on rolling back its buyback programme. Second, the deficiency in the monsoon has lessened in the past few days, but it remains to be seen whether the level of water in catchment areas has been sufficiently replenished for sustained agricultural production next season. Also, food inflation needs to fall further and remain low for a sustained period to enable RBI to tweak its monetary policy.

V Sridhar Kolkata

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First Published: Sep 17 2014 | 9:02 PM IST

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