Let me emphasize that this is not a prediction of either the path of oil prices or a forecast of our monetary actions, lest I read in the paper tomorrow “RBI to raise rates”. More generally, the extended glide path over which we are bringing inflation in check appropriately balances inflation and the need for reasonable growth.
Arguments against what we are doing There are many who believe we are totally misguided in our actions. Let me focus on four criticisms. First, we focus on the wrong index of inflation. Second, we have killed private investment by keeping rates too high. Somewhat contradictorily, we are also hurting the pensioner by cutting rates too sharply.