MONETARY POLICY RABBIT:HAS IT VANISHED?
All stakeholders have been watching the RBI Governors steps very carefully today.
However like a Magician doing a rabbit trick,the rabbit vanished.
Now the question is that is it a good decison?
Yes,given three realities
The world is in a fragile state.A bank regulator is expected in Europe as stress Test was negative on 13 out of 25 major banks in Europe.
Given all the forecasts about Oil,one thing remains is that Oil has been unpredictable as demand and supply data change on geopolitical conditions.
Execution is just picking up in India.Manufacturing is operating at 50-60% capacity.It will take it at least an year to improve utilization to the high 80′s and then only would a decison for expansion be effected which is Probably why
“THE RBI GOVERNOR IS 500% RIGHT IN NOT EFFECTING A RATE CUT”.
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