Is the hike proposed by RBI on credit policy the right move?

yes, food inflation is rising at tremendous speed.It was needed to take some step.Food inflation is having adverse effect on the poor.

We know RBI is not Govt. and they have few 'tools' to manage the economy.

This time they are rightly wooried for rise of inflation and a small hike of CRR was un-avoidable. We have seen so many 'explanations' for price rise specially for food items. Common man may not eat these "explanations" or may not consume " Higher GDP Growth " and they are in great distress. RBI has attempted to express their concern. May the Govt. take some corrective measures ... the countryside in burning .. !!

Well said Rama....it is true...RBI need to take some corrective measures to control inflation...and its a right move....

It seems baloon effect...need to have a blance...if you press from ne side...it will expand from other side.....Central Govt has done this to maintain its promise to farmers...specially in food sector....

Yes, i feel this is the right move by the RBI looking at the high liquidity available in the system. Anything over is always not good for the economy nor for the general public in the system. And there is over liquidity in the system currently and this creates an adverse effect on many. And i feel by not touching the other monetary rates and just hiking CRR by 75 bps, the RBI has strike an right step keeping growth and psychological emotion of the people in mind. ..... Thank you, Manish N

Cheers!!

In the present scenario, RBI is left with no choice, but it should have been done sometime ago.  The measure is expected to siphon off available funds from the market as many nationalised banks have expressed concern over not achieving the Credit budgets.  Still, banks have not decided on the interest rate hike, which may be bound to happen in due course.

The RBI has no other option. Inflation has been threatening to challange the very basis of economic fundamentals and political comfort levels at the same time. The figures of mere economic growth would have had no value if inflation continues to hower well in double-digit. It can become counter-productive. RBI has to take some ruthless measures to plan and execute inflamation management. RBI cannot necessarily think in temrs of market expectations. It has to live up to the expectations of political reality and emerging economic scenario. 

Yes it is a right move by the RBI. To coltrol inflation. To manage the problem on the supply side. The inflation right now is not only due to problem on the supply side but if you can see a bit far it is because of the general elections that were held last year. The businessman are all covering up their expenditures which they incurred during the election. This is a usual phenomenon. If you will see very closely after every general election in India this thing takes place. One thing more which has added fuel to fire is the horders of essential commodities, who are trying to encash the situation to their advantage.

The RBI action was correct and infact they should have done long time back. The government should also have to take measure for curbing black money becuase there is lot of balck money circulating in India and this is main cuase of inflation.

The current inflation rate is a shameful affair for this country. Every goddamn country is scared of deflation, this is the only country scared of inflation worries. This is shameful, the move is correct, despite the fact that the media is saying that the inflation is because of the supply side problems.