RBI Needs To Rethink Inflation Policies: Surjit Bhalla
  • Elizabeth George
  • Sep 18 2013

September 18: ZyFin Research's Surjit Bhalla says the reason for high inflation in India is almost entirely due to food prices. RBI needs to admit there has been a massive failure in addressing this inflation, he says, adding that non-food inflation is down to 1-2%. Monetary policy cannot address food inflation, he says, adding that the RBI must review its actions. He says recent RBI moves have already reduced bank borrowing rates and he expects the correction to continue.