Home > Macro Trends, Market View > RBI on inflationary vigil

RBI on inflationary vigil

Friday, July 31, 2009 Leave a comment Go to comments

As I had indicated earlier-inflation and fiscal deficit remain the biggest threat to Indian economy in the medium term. RBI Governor Mr. Subba Rao has alluded to the same concerns and says that RBI is planning to rollback the monetary expansion as soon as growth returns. This certainly means that RBI might raise interest rates sooner than you and I expect!

Indian governors have never been Keynesian and going back to monetarist roots is all but natural.

It will be interesting to note what Ben Bernanke does in the US. As posted earlier, the great macro trader Soros thinks that stagflation is imminent in the US.

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