Strong measures being taken by RBI are as expected, to control the Inflationary pressures on the economy. The monetory policy has to consider many factors like the demnd pressure being put on the economy. India has an increased budget defiticit in 2008-09 as the government increses the spendings in view of the aproaching elections thus the measures to cotrol the spending by the government would be determined by the checks by the Centrl bank of the nation. The finance is being affected by the subsidies on the sharply risen oil price tht has shown an everso slight slide which may not be enough either. The crude price t the international level remains elevated and volatile and poses a gret risk to the global inflation owing to the relatively tight demand and supply. THere seems to be no possibility of the price showing any shrp decline. The waiver of debt to the farmers by the government and an increment in the employees salary are the other factors that have significant effect on the monetory policy of RBI.
Strong measures being taken by RBI are as expected, to control the Inflationary pressures on the economy. The monetory policy has to consider many factors like the demnd pressure being put on the economy.
India has an increased budget defiticit in 2008-09 as the government increses the spendings in view of the aproaching elections thus the measures to cotrol the spending by the government would be determined by the checks by the Centrl bank of the nation.
The finance is being affected by the subsidies on the sharply risen oil price tht has shown an everso slight slide which may not be enough either. The crude price t the international level remains elevated and volatile and poses a gret risk to the global inflation owing to the relatively tight demand and supply. THere seems to be no possibility of the price showing any shrp decline.
The waiver of debt to the farmers by the government and an increment in the employees salary are the other factors that have significant effect on the monetory policy of RBI.