INFLATION ........n RBI's dilemma....

supply-side constraints and capacity bottlenecks have made inflation(wholesale price index WPI) reach a whopping 6.73%....

RBI has tightened the liquidity by raising CRR rate .but this works best when inflation is caused by demand side pressures...however for our central bank ,containing inflation is an end in itself,irrespective of the nature of inflation.to compound this dilemma are concerns on the currency front

RBI's measures on tightening liquidity will slow down the growth in GDP to 8% in 07-08 from the 9.2% estimated for the current-fiscal

RBI has to use limited tools at its disposal to ensure that the surge in liquidity is channelised into investments and not consumption....formation of an asset-bubble cannot be ruled out

speculation on futures trading market is a heartburn for communists n are pressurising gov to ban futures trading in commodities such as pulses,wheat,etc......will FM bite the bait ..only time will tell...4 more action keep watching this blog...