 "RBI, reserve bank of india")
This refers to the editorial “Inflation warrior” (December 6). You have rightly appreciated the action of the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC). The apex bank, often the target of criticism for kowtowing to the wishes of the government, has done the right thing by not reducing the policy repo rate. The decision shows maturity of thinking, detailed study and logical interpretation of the ground realities and application of mind for arriving at a unanimous decision.
The markets were indeed surprised because everyone was hoping that rate cuts will continue and the cumulative 135 basis points since February
