The Reserve Bank of India’s (RBI’s) 12 rate hikes did not help contain inflation. But to our disappointment, RBI has again, for the 13th time, increased interest rates by 25 basis points and the repo rate is up from 8.25 to 8.50 per cent. One cannot tell whether inflation will come down or not, but growth may slow as a result. The vicious circle of inflation and food prices must be broken. In this context, it is imperative for the government to take remedial steps on the farm front and improve transport facilities, avoiding wastage and increasing production. The supply-side constraints on food articles should be tackled so that food prices come down.
Jacob Sahayam, Thiruvananthapuram
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