Firstly, I think RBI is acting on the behest of Finance Ministry and not independently which is not a good sign. Secondly, I think the hike could have been 25bp instead of 50bp. In my opinion, the government has panicked after seeing the anti-congress trend in recent polls which they ascribe to inflation.It's a different matter that if the elction results would have been pro congress, the government would not have bothered to shake the boat "just to control inflation"!
