Letter to BS: Raising repo rate for second time seems a welcome move by RBI

This refers to the editorial “Ahead of the curve” (August 2). Crude oil prices are going upwards and it will have a direct impact on trade deficit and retail inflation as well. Plus the United States is putting pressure on India for cutting oil intake from Iran. We know that there are a few states that are yet to pass the recommendations of the Seventh Pay Commission. This will further raise inflation. Keeping all this in mind, raising the repo rate for the second time in succession to keep inflation under check seems a welcome move by the RBI.

Bal Govind,