Taming inflation
The Reserve Bank of India (RBI) has raised the repo rate from 4% to 4.9% in a span of just 34 days to contain inflation. It says the inflationary phase the country is passing through is a result of supply shocks, mostly related to food items. The basic question then is will making money a little dearer remedy the supply shocks experienced in daily life and in meeting daily necessities? There is very little connection between the two. Two, will not a higher lending rate lead to increased cost of production and fuel inflation? Improving the supply side is what is required, which is probably not easy today because of the Russian war against Ukraine. At this juncture, the RBI seems to be continuing to take monetary measures, the impact of which it is not sure of, or which can even be counterproductive.
P. Mangalachandran,
West Ponniam, Kannur, Kerala
Facing fire as a result of galloping inflation, the Government has no other option but to sacrifice growth in the hope that inflation will cool down. The increase in repo rates was inevitable. It is almost certain that a further rise can be expected. However, how much this is going to help in tackling inflation remains to be seen. Food inflation is most worrying as it has put even the most basic items out of the reach for many.
Anthony Henriques,
Mumbai
The repo rate adjustment game seems to be back. Such steps would have another effect; making EMIs of home loans and other personal loans expensive is one example. It may help reduce inflation levels to some extent but the private consumption part of growth engines may get affected. The unabated rise of inflation in India and globally is largely the consequence of a disrupted supply chain. The Government should increase its public expenditure.
Dr. D.V.G. Sankararao,
Nellimarla, Andhra Pradesh
A silence
India has had to bow its head in shame following obtuse remarks made by certain political spokespersons against a particular religion. But what is more shocking is that the Prime Minister and the Home Minister have maintained a stony silence on the issue.
It is also a fact that certain news anchors on television hardly moderate debates, leading to fiery remarks, in turn adding to the problem. It is time right thinking people realise that there is a grave situation that prevails in the country due to the divide-and-rule policy practised by the ruling dispensation. One hopes that people will exercise caution and vote with thought in the 2024 general election.
Tharcius S. Fernando,
Chennai
Enforce mask rule
Social distancing and mask wearing have gone for a toss. However, with warnings of rising COVID-19 cases in some parts of India as a result of a spurt in travel, it is imperative that health protocols return. As a traveller, I find many precautions being ignored.
Aanya Singhal,
Noida, Uttar Pradesh
