RBI needs to talk to GoI

With RBI Governor Duvvuri Subbarao making it clear the current headline WPI inflation of 7.25 is above the threshold when it starts to adversely affect GDP growth, it suggests RBI is not going to be cutting rates at its next meeting at the end of the month. The problem, as we’ve said before, is that it’s not quite clear what number RBI is looking at.

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