Mr Subba Rao is out of his depth here. The cause of inflation is not too much of money in the system - demand side inflatio, but too few goods being produced - supply side inflation. A lot of money has been invested, but projects are either not taking off or being delayed or overshooting estimates. Raising bank rates till kingdom come will not really solve the problem ..i will just choke off the economy. Thecountry at this time needed an intellectual giant as RBI governer - a Ranganathan, or Jalan, or best of all a Reddy. Mr Subba Rao is basically a beauracrat ... he is unable to take on the finance minister or ministry
by raising interest rates prices are only going to go higher. thats because higher interest rates tend to bring more capital inflows due to the dollar carry trade and then corporate india will also not borrow from our country, they will go for ECB.
Every working person saves some money after paying several kind of taxes like Income tax, sales tax, service tax, etc etc for future e.g. children's education, marriage, buying house,old age, medical treatment etc. But, that saving is eaten away by congress govt at centre now and by BJP earlier( Yashwant Sinha started lowering interest rates much below inflation). If industry is to be helped it should have been done by removing income tax on bank interest and by keeping inflation at low level, which was not done. Fleecing common man was easier option and it contonues.
USE LESS PPL LIKE SUBBA RAO, MAD MOHAN SINGH, ALUWALIA AND ALL OTHER GET CHANCE TO WORK ..ONLY TO SPOIL THE INDIAN ECONOMY. R B I SHD HVAE INCREASED BY 3 TO 5 % INSTEAD OF .25 And .50 % itis all not going to work at all
Re: USELESS BUGGARS WORKS IN R B I TOPS JOBS
by Rajendra Gupta on Jan 26, 2011 11:30 AM
Please understand .They are traotors and corrupt.Their sole aim is to enjoy high posts and luxury.They are stooges of glamor.Western capitalists and guys like amabnis.From where they get huge kickbacks.Just throw them out and put injail.prices will fall instantly.
USE LESS PPL LIKE SUBBA RAO, MAD MOHAN SINGH, ALUWALIA AND ALL OTHER GET CHANCE TO WORK ..ONLY TO SPOIL THE INDIAN ECONOMY. R B I SHD HVAE INCREASED BY 3 TO 5 % INSTEAD OF .25 And .50 % itis all not going to work at all
Inflation is very high and require 50 basis point hike. But RBI governor is always far behind the curve. He is worried about the stock market and least bothered about the common men. This name sake 25 basis point hike won't help at all.
Re: Subba Rao is far behind the curve - Waste fellow
by Biren Shah on Jan 25, 2011 06:14 PM
You are also same fool. Theory doesnt work at all places - which these people might have learnt and you are supporting them. They are doing this from last 2 years and it is worsening inflation only. Reason: Bank rates getting costly, loans getting costly. All businessman increase price to compensate their losses. So, finally inflation only increases!! Only common man - he will have to pay more to all businessman and die. Complete bad policy of making rich as richer and poor as poorer.
