Let me congratulate Mr Reddy for his long sighted policy moves...
Finance Minister Mr. P Chidambaram wanted cut in interest rates for the past one year to fuel the growth. He told in all sort of forum but Mr Reddy didnt take the cue from the FM saying that Inflation is a concern. Both of them repeated their stand for the past one year thereby indicating conflicting ideas between RBI & Finance Ministry.
Inflation touched record high of 6.68 last friday. If the real fuel prices are passed on to customers, the real inflation could have been around 8.5% in my opinion.
Now the experts are talking about interest rate hike to tame inflation !!!!!
Point to Note:
1. Reddy acted with long term vision and hence no short term decisions were taken. He was abused in media by "experts" and Mr Reddy proved to be having last laugh on his critics. I salute your great show Sir...
2. Finance Minister proved to be a politician rather than a economist.
3. Finance Minister is in real trouble for not taking any concrete action to tame inflation or control of food prices in the last 2-3 years. He wasted last three years by not reforming, disinvesting etc... and earned all the bad name for inflation.
4. It is a huge dis-advantage to Congress during poll year and his farmer loan waiver could be forgotten too fast.
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