This refers to the editorial “Now, the supply side” (January 30). We should not expect much from the graceful action of the Reserve Bank of India (RBI), which probably tried to break the stalemate in governance in the financial sector caused by the finance ministry and the central bank, giving an impression that there was more than the permissible levels of “give and take” between them. RBI has decided to work alongside the finance ministry, since the latter was taking the economy into the wilderness. A 0.25 percentage point reduction each in the repo rate and the cash reserve ratio was in the context of both the finance ministry and RBI governor having reconciled to the fact that the Government of India and RBI could not afford to waste the pre-Budget and post-Budget days arguing about the pros and cons of tinkering with base rates, or the rights and wrongs of easing out former Deputy Governor Subir Gokarn.
M G Warrier Thiruvananthapuram
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