RBI is acting in a highly discretionary manner

Let me start by saying I have no quarrel with the Reserve Bank of India (RBI) governor, Raghuram Rajan's decision to hike the repo rate by 25 basis points to 8 per cent last Tuesday. Like most middle class readers of this paper, who have watched their hard-earned savings get eroded by negative real interest rates over the past few years, like the governor, I believe there is no trade-off between growth and inflation in the long run.

Read Full Story>>