Review RBI Rate Change Practice
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.