This refers to the editorial "Sustainable relief?" (September 17). The recent macroeconomic pattern may be short-lived. The Reserve Bank of India needs to decide the course of policy action accordingly. Supply side structural constraints, which have largely caused the generalised inflationary spiral, show no sign of easing in the near term. Governmental policy interventions to ease these constraints have not worked either. Core inflation has been stubbornly high. The movement of international crude oil prices, being subject to the vagaries of international political and economic factors, is virtually unpredictable.
Further, the uncertainty over the timing and extent of the US Federal Reserve's withdrawal from quantitative easing has escalated the risk of monetary policy-making in India. The government should speed up the process of easing the supply side constraints and improve governance to stimulate the investment climate and spur growth.
Biplab Chakraborty Kolkata
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