Category: RBI
RBI’s 25 bps rate cut was really no surprise to anybody.
Here’s what Chidambaram probably told RBI Governor Subbarao before the rate cut ( lyrics From MJ’s Beat It !)
I Told You Don’t You Ever Come Around Here
Don’t Wanna See Your Face, You Better Disappear
The Fire’s In My Eyes And My Words Are Really Clear
So Cut It, Just Cut ItYou Better Run, You Better Do What You Can
Don’t Wanna See No Blood, Don’t Be A Macho Man
You Wanna An Extension, Better Do What You Can
So Cut It, If You Wanna Remain GuvJust Cut It, Cut It, Cut It, Cut It
No Guv Wants To Be Pressurized
Showin’ How Funky Strong Is Your Fight
It Doesn’t Matter Who’s Wrong Or Right
Just Cut It, Cut It
Just Cut It, Cut ItJust Cut It, Cut It
Just Cut It, Cut ItI am Out To Get You, Better Listen While You Can
Don’t Wanna Be A Boy, You Wanna Be A Man
You Wanna Stay Guv, Better Do What You Can
So Cut It, Just Cut ItYou Have To Show Them That You’re Really Not Scared
You’re Playin’ With Your Extension, This Ain’t No Truth Or Dare
I’ll Kick You, Then I Will Beat You,
Then I’ll Tell You It’s Fair
So Cut It, If You Wanna Remain GuvJust Cut It, Cut It, Cut It, Cut It
No Guv Wants To Be Pressurized
Showin’ How Funky Strong Is Your Fight
It Doesn’t Matter Who’s Wrong Or Right
Just Cut It, Cut It
Just Cut It, Cut It
Just Cut It, Cut It
Here is the actual song
RBI Governor’s Zero Sibal Moment
Kapil Sibal earned the sobriquet of “Zero Sibal” for saying on National TV that there were no losses due to the 2G spectrum sale by Raja.
Now RBI Governor Subbarao is following Zero Sibal’s footsteps
When asked about the issue of loss incurred by not auctioning the spectrum, Subbarao – who was Finance Secretary between April 30, 2007 and September 4, 2008- is learnt to have said that while there was no loss to the exchequer, even if there was, it was only notional in nature. He said there was no monetary loss in actual terms. “Much depends on perception,” he is learnt to have told the JPC.-from the BS
M3 indicators shows inflation here to stay
RBI has come out with its annual Handbook of Statistics on the Indian Economy 2011-12.As usual, it is a treasure chest of useful information and stats.
One of the most interesting stat is the components of money stock.The stats indicate that the M3 indicator increased by the following rates:
2008-09:18.75%
2009-10: 16.84%
2010-11:16.09%
2011-12:13.14%
There is considerable research which indicates that M3 indicator is a good predictor of medium term inflation.As Milton Friedman said, “Inflation is always and everywhere a monetary phenomenon”.
So whether RBI cuts rates tomorrow or not, be prepared for elevated levels of inflation.