Instan Tip

The fortnight’s burning question.

Is RBI’s obsession with inflationcontrol slowing down the economy?

No. Subir Gokarn, Chief
Economist, CRISIL

There is a sense that a growth rate of 9 per cent-plus is not sustainable. RBI has done well to keep inflation in check. It’s true that high interest rates may be hurting growth but controlling inflation too is important.

Maybe. Ravi Sikka, Chairman, Economic Affairs Sub-committee, CII

We had suggested that RBI should consider desisting from increasing headline interest rates any further since that may be detrimental to the medium-term growth prospects of the economy. Also, SMEs are finding it very difficult to access funds in this situation, since effective rates and availability of bank credit are an issue for them.

No. Rajesh Jain, CEO, Pranav Securities

India’s brisk economic expansion has led to the hyper-spending by people. I think RBI’s move to tame frivolous consumerism and keep tabs on growing sub-prime lending is a good idea. Real growth can be achieved by maintaining a balance between the growth rate and inflation.