Reserve Bank Of India Averse To Loosening Strings On Money Supply: Jefferies

Under Dr. Rajan, the Reserve Bank of India (RBI) has been averse to loosening the strings on money supply, which is tied to decisions on policy interest rates, Jefferies analysts observe. Nilesh Jasani and colleagues said in their April 21 research note titled “India Equity Strategy-Is Dr Rajan Changing?” that Dr. Rajan is more eager to trim interest rates now than at any other point during his stint in office since mid-2013.

Dr. Rajan had a clear goal of inflation control

Jasani and team note that since the arrival of Dr. Rajan in mid-2013, the stated, primary objective of the RBI has been inflation control, nearly at the expense of everything else. They believe the central bank has been almost indifferent to the...