This refers to the editorial "Monetary policy dilemma" (March 18). It is too early for the Reserve Bank of India (RBI) to take a call on its current monetary policy stance based on inflation numbers from both the Consumer Price Index and Wholesale Price Index. Elections are round the corner and a manipulation of the supply side, which is the major cause of inflation, to register a steep fall cannot be ruled out. In our economic and political system, where the monetary policy's role is subservient to that of fiscal and administrative policies, the need for RBI to be abundantly cautious to adjust its policies to the highly fluctuating inflation index is paramount. The central bank cannot afford to stumble and alter its policy stance according to the market sentiments. It would be better if RBI maintains the status quo and waits till a new government takes over.
T V Gopalakrishnan Bangalore
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