A drunk bird

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It takes India’s foremost economist five months to get the obvious. On April 2, he favoured reducing nominal interest rates by 300bps, now he says, “monetary easing in such a difficult inflationary situation is inappropriate”, after seeing that real rates have fallen by 221bps, despite the RBI’s hikes.

I prefer slow moving bureaucrats like YV Reddy or Duvvuri Subbarao. Were Mr Shah the RBI governor, he would have cut interest rates by 300bps on April 2, reversing it with a hike of 521bps after five months as wisdom dawned on him.

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