Re­view RBI Rate Change Prac­tice

The Economic Times - - The Edit Page -

Apro­pos ‘Tin­ker, Tai­lor, Bar­ber, RBI’ by Swami­nathan S An­kle­saria Ai­yar (Apr 13), PSU lenders haven’t been able to of­fer re­duced rates to bor­row­ers for a dif­fer­ent rea­son: they’ve been car­ry­ing a big bag of bad as­sets, which pre­vents them from re­duc­ing in­ter­est rates. Why can’t gover­nor Raghu­ram Ra­jan give up RBI’s prac­tice of tin­ker­ing with pol­icy rates now and then? Let there be a wake-up call for pol­icy rate changes. Only then let the RBI re­spond to the sit­u­a­tion.

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