This refers to the editorial "The status quo option" (July 30). Both the government and the Reserve Bank of India (RBI) are worried about inflation. The steps they took have started yielding some positive signs on inflation and its expectations. This cannot be ignored by RBI while deciding monetary policy at this crucial stage when the efforts of the government to boost confidence levels in the economy are working well. Other trends that can cause inflation, except perhaps the price of oil, are moving in a favourable direction. This is the ideal moment for RBI to give a signal that it favours soft rates to maintain the growth momentum visible in industry and elsewhere.
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T V Gopalakrishnan Bangalore
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