The Reserve Bank of India (RBI) has begun unwinding its crisis induced monetary policy. In the second quarter review of Monetary Policy 2009-10 unveiled on Tuesday last, the RBI has signaled an exit from a loose monetary policy even as it left its key rates unchanged. Most market players are apprehensive that the RBI has laid the groundwork for a rise in interest rates in the next quarter. It has brought out a carefully worked out policy, keeping in mind inflationary expectations and the need ...
