Lack of dedicated debt agency leads to conflict between managing govt debt and inflation. RBI chose former, but rate hike would have helped normalisation, attracted foreign funds.
Modi govt’s approach in Budget may bring growth for few years, despite slowing world economy, rising rates. But problems in areas including education won’t just vanish automatically.
There are some early signs of moderation in inflation and a pick-up in growth, but RBI is likely to monitor growth and inflation before a decision on changing rates.
The May inflation figure may be somewhat inaccurate, with the rise appearing to be mainly due to higher global crude oil prices, commodity prices, and supply-side disruptions.
New G-SAP tool is RBI’s way of keeping govt’s interest burden low. But amid inflation concerns, it also has to raise interest rates to prevent price rise.
SEBI probe concluded that purported loans and fund transfers were paid back in full and did not amount to deceptive market practices or unreported related party transactions.
Many really smart people now share the position that playing cricket with Pakistan is politically, strategically and morally wrong. It is just a poor appreciation of competitive sport.
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