Opinions are bound to be varied on the issue of a rate cut by the Reserve Bank of India (RBI) due to the complexities and uncertainties associated with it. In the present situation such complexities and uncertainties appear to be under control, though a spike in inflation and some other critical factors cannot be ignored. Thus, the RBI's decision to maintain status quo in its third bimonthly monetary policy is along expected lines and will allow the situation to stabilise.
Consistency in policy action is key to sustained growth. Outgoing RBI Governor Raghuram Rajan would like to wrap his innings in a subdued manner without much exhibition. Nevertheless, his tenure will be remembered for a long time. His calm yet effective actions will be missed.
Srinivasan Umashankar Nagpur
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