Hike in policy rate cosmetic
The recent hike in policy rates is nothing but a cosmetic exercise by the RBI. 40 and 50 basis points are nothing for a huge economy like India and these are not going to contain inflation in any way. It is simply a face-saving exercise to show the public that government is doing something to check rising prices. Inflation is caused by several internal and external factors. To contain it both the central and state governments have to take strict and prompt action.
Vinay Kumar Malhotra Ambala Cantt