Comments on RBI policy by Amar Ambani, Head of Research, India Infoline (a well diversified financial services company)
20th September, 2013 : Comments on RBI policy by Amar Ambani, Head of Research, India Infoline (a well diversified financial services company) Also please find attached picture of Mr. Amar Ambani, Head of Research, India Infoline. Raghuram Rajan, the new RBI Governor, in a surprise move, hiked Repo rate by 25 basis points with a view to anchor inflation expectations. Although the Nifty has fallen by over 100 points, in hindsight, it seems the right step by RBI, reaffirming its primary duty to keep inflation in check. For growth, the market should turn to the Government instead of the RBI. There has been an uptick in WPI over the past two readings on the back of sharp currency depreciation, ongoing de-regulation of fuel prices, and increase in international commodity prices. On the other hand, CPI which measures inflation at the retail level has been stubborn in the elevated range of 9-10% due to structurally high food inflation. The general i...