My Choice, says the RBI!

My repo, my CRR, my choice. Not to offer a rate cut, even if the corporate spirit roams unrevived.

My choice, to be size 7.5% or a size 4%. They don’t have an optimum interest rate size, and they never will. To use CRR or the repo to trap inflation is to believe that you can halt the expansion of monsoon induced prices. Or capture growth in the palm of your hand.

Growth is caged, let it free. Interest rate is not; let it be. My choice. To cut or not to cut. To have a rate cut before policy review, out of review or not to review at all. My choice.

To cut temporarily, or to cut forever. My choice.

To use the CRR or the repo, or both. Remember, the cut is my choice. I am not your privilege. The PDMA to be created, the Monetary Policy Review Committe to be set up, adding your inflation target to mine, they’re all ideas and can be replaced- My commitment for inflation control cannot, so treasure that.

My choice; to declare a review every month. Don’t be upset if I don’t do a review every month. Don’t be fooled if I give a review every week.

My choice, to support growth or not. To pick it up from 2 trillion dollars or not. So don’t get sassy. My inflation control might be your pain; my steadfast rates, your bane. My order, your anarchy. Your sins, my controls.

My choices are like my fingerprints. They make me unique.

I am the central bank of this country. I am the emerging market, not the globe. You are the emerging market. Wake up. Get out of the stagflation storm. I choose to empathise. Never indifferent. I choose to be different. I am the currency. Infinite in every direction. This is my choice.


21 thoughts on “My Choice, says the RBI!

  1. Brilliant again! It is amazing how you comment upon multiple issues at the same time. I wouldn’t know anything about repo rates and RBI, but I was not very pleasantly amused with the hollowness of the ‘My Choice’ video. Sometimes, I feel that the goings on in this country are pretty surreal. You keep your finger precisely on that point which emphasises this absurdity. Humour, when guided by truth, shakes you out of your slumber. You are, as you confess in the comment above, quite wicked because you are too perceptive!


  2. Mansi, on a different note, India’s constitution has been amended over 50-60 times since independence, whilst the American constitution was amended only a handful of times, after 1776. E.g. princely states were annexed to India, and were promised privy purses but the govt later went back on their word and brought about an amendment. Bureaucrats have their way and India would’ve been a banana republic. Democracy literally ‘survived’ because of the cases(Golaknath case) fought by Nani Palkhiwala and judgements obtained(Basic features doctrine).

    This post is brilliant! U too can stop by my blog I write whatever interests me.

    I find math and modelling exciting! I am taking CFA 2, and I am an aspiring quant(wish to study fin. engg next year).

    I would like to stay connected with you!


    • Hi Rho,
      Thank you so much for your interest! It’s great fun for me to meet up other economists/ finance pros/ econometricians through the blog…I did browse thru yours and its extremely finance oriented (the CFA effect, I suppose)…I have written some exotica on Gauss earlier. Since I too am oriented quantitatively and teach econometrics, Gauss is always around me :)…you may like to go through those blogs…I will be in touch too! Many thanks again.

      Liked by 1 person

      • Manasi mam, for me, prepp’ing for CFA has been an enriching experience. I truly feel, it’s a generalist course – anybody can learn investment science which is nice…; the treatment is non-mathematical and the vignettes use market data(it’s not mocked up). I’m more aware!

        A news headline “Suresh Prabhu and IRFC – the finance arm of Indian railways raise $1 billion by issuing rupee-denominated tax-free bonds, a yield of 3.917%(higher than most other countries) for various capital expenditures” or “why the swap curve is used to bootstrap the interest rate curve, since many nations don’t have a very liquid govt. bond market”, which would earlier look arcane to me, sounds cool now! I’ve built a temperament of going through some good research papers. And its only been a span of 12 months.

        @Gauss, I knew that, financial market data are random. But, I never thought, randomness could be modelled. Random processes and simulating stock prices in Python/R, a sound knowledge of probability/stats, regression analysis, calculus would be my friends for the next 6 months. I would like to work on my math for a while, look for a trading job, until I secure an admission.

        Gee – i’m just learning (not some pro, don’t want to sound like that either)! I tried to search your name on LinkedIn, but couldn’t find you there. My e-mail address is



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