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Rajeev Malik: Between a rock and a hard place

The RBI's unexpected move to hike the cash reserve ratio (CRR) raises important concerns about how the policy makers are going about the business of tracking and flagging risks, guiding financial markets' expectations, and ultimately announcing policy actions. The hike also raises several key issues about the appropriate monetary policy setting for the booming Indian economy in the backdrop of flushed global liquidity.  To be fair, the RBI had signalled the possibility of an inter-meeting action in its October policy statement by including the word "promptly" in its statement in ...