India: Prime Minister wakes up FM with a swift kick in the...

Thursday, November 20, 2008

It is about time these guys got their act together...after the nonsense at WEF and in the last few weeks, it seems the PM came back with a better handle on what is going in the world.  It has been obvious for some time, see India: Expect cuts in Policy Rates.
Instead,  we have had an Alice-in-wonderland week of fairy tale pronouncements from the FM of high inflation and 9% growth.

To get everyone back to work, the FM got a well-deserved swift kick you know seems we have not De-Coupled after we have the following in Business Standard:  Steep cuts likely next week

A meeting chaired by Prime Minister Manmohan Singh at his residence Monday and attended by RBI Governor D Subbarao and Finance Minister P Chidambaram, among others, discussed a 50 to 100 basis point cut in the cash reserve ratio (CRR), the repo rate, the reverse repo rate and the statutory liquidity ratio (SLR).
Soon after the meeting, Kamath told reporters, “There is further scope for a 250 basis point cut in the CRR and, if the situation warrants, a cut in the SLR too.”
Kamath added  that with the recent sharp drop in the annual wholesale inflation rate (which stood at 8.98 per cent for the week ended November 1 from a high of nearly 13 per cent in August), there are indications that inflation would come down to 5 per cent earlier than estimated.

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