Quick Edit | Two policy poles

Quick Edit | Two policy poles

The contradiction could not be more glaring. On a day when the Reserve Bank of India (RBI) raised policy rates by 25 basis points, the Union government raised the minimum support price of wheat for the 2012-13 procurement season by 165.

Such decisions are irrational when RBI has highlighted food inflation as a key reason for the structural nature of inflation. Instead of giving away festival gifts —and taking them back at a later date as inflation —the government should display some seriousness in tackling this problem.

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