Letters: Alignment is key

The editorial, “Time to align” (April 11), reinforcing the need to align interest rates with market yields is timely. No economy can afford ponzi schemes to thrive nor delink from real interest rates.

Recall former Reserve Bank of India governor Raghuram Rajan’s apt explanation of the difference between nominal interest rates and real interest rates by citing the example of movement of prices of dosa. While the stability of macroeconomic conditions ensures that savers remain in the positive range on real interest rates, it is essential that intermediaries sustain themselves in the market on the basis of their operational