Full Coverage: What is the force behind RBI Governor Raghuram Rajan’s first monetary policy?
3.45 am Just woke up after long work till 12 am. "The office is so messy as like Indian economy. Fortunate Subbarao who left this mess created by few stupid political economists," Raghuram Rajan found telling the sweeper who came to clean up the mess. He muttered "I felt like the sweeper."
4.00 am Started working on various calculations again. "Can't help yaar! If I reduce the rates economy will see higher inflation and falling rupee. If I don't cut, industry will kill me, Chiddu will blame me. Fu*k so difficult situation," said Rajan to himself.
4.30 am "Larry Summers you are a lucky chap boss. People threw you out of US Fed Gov race. Wow," said Rajan again to himself.
4.30am to 6.30am continuously scrolling the papers
7.30 am Finance Minister P Chidambaram's call. "Rajan, today I woke up early at 7.15 am despite late night party, just to tell you that I am very concerned about faltering growth, rising prices and falling rupee. So boss, buck up and make some smart policy announcement. Cut repo rate by 150 bps, remove crr and some more stupid rates, late the inflation sky rockets to increase wealth of poor farmers and allow rupee to reach its century mark so that we can award it a Bharat Ratna," said Chidambaram on the phone.
8.00 am Rajan got another call. However, nobody spoke for 15 minutes. "It must be PM's phone discussing about the economic situation through mute mode," said security guard of Rajan.
9.30 am "Rajan Uncle, Rajan Uncle please keep the policy pro poor. So I will be able to say aam aadmi of India that even RBI was told to supply free money to you guys. My suggestions are no interest rate to 80 crore Indian poor while increasing interest rates for rest by 100 times. We can also announce 'Money on Demand' scheme under which they would have right to demand money from bank anytime even they don't have anything in their account," said Rahul Gandhi who woke up early in the morning to send his suggestions to Rajan.
10.30 am A call from some Pappu Pandey, original representative of aam aadmi of India which includes urban, rural middle class and person who bears the brunt most out of economic slowdown as well as high inflation. He said "Sorry Rajanji, I disturbed you in the midst of work on the most influential policy statement for us. I was actually trying to call you since you inducted as RBI Governor but with no success. I have a sincere request to you that right now I don't have any money in my pocket to distribute freely among 80 crore people of India. Neither my income is rising nor are the prices stabilizing. So a sincere request that if you postpone the growth for a while and allow me to purchase daily essential food and become stronger to be more productive then it would be great service for us. I ensure you that if you allow me to become stronger I will not have any problem contributing for the growth of rest 80 crore people."
11.00 am Policy statement released. MSF reduced by 75bps, no CRR cut and Repo Rate hiked by 25bps. Focus on curtailing retail inflation which hurts most to middle class population.
11.25 am "Market has termed RBI's monetary policy as a pro-middle class," Media "First time in the history any of India's RBI Governor gave importance to consumer price index (CPI inflation)."
