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tightening inflation
by venkat reddy on Apr 25, 2007 10:13 AM

containing the inflation by increasing the CRR, RRR or PLR it won't work at this present economy. because of these rupee value appreciated. you can't correlate Rupee Value appreciation with GDP. Since GDP is in full swing in the past four years, due to Interest rates only. if you increase these above rates. you can;t expect economy GDP growth in same manner. let them reduce the intrest rate and fix the norms to lending the money. it may work.

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RBI has been spot on, says Reddy