With reference to the editorial, "RBI waits for structural reform in Budget" (February 3), growth is a topic that has been the focus of every policy review. Reserve Bank of India Governor Raghuram Rajan has in the past amply demonstrated his propensity to cut rates between policy periods whenever the situation so warranted.
Whether the domestic situation now favours maintaining status quo in terms of key policy rates or otherwise should not be a matter of debate, as the Union Budget is round the corner and some prescriptions are expected from it that will have a bearing on various issues concerning the economy.
The situation worldwide is volatile and possible actions by central banks, particularly in the US, Europe and Japan, will considerably impact India. It makes sense to wait for these actions and factor them in the next policy review. This will make the exercise more meaningful and productive.
Srinivasan Umashankar Nagpur
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