Subbarao's tightrope walk

The govt has shown its animal spirit, but for RBI Governor D Subbarao, the task has become more complicated. Will he cut rates to keep the animal spirit going or stick to his anti-inflationary stance, given the latest inflation number at 7.6% is out of the RBI’s comfort zone? Here are four scenarios and the best option suggested by a majority of market participants Business Standard spoke to:(Click on graphic)