RBI Needs to Evaluate Principles of Islamic Monetary System
The only tool (of interest rate) for RBI to control liquidity for balancing inflation and growth rate is not enough resulting in the inability to allow India grow better without inflation. Trying to exert control on inflation, RBI fails in terms of interest rate and the country's economic growth tumbles. According to RBI Governor, growth rate will decline and there will be an increase in inflation. He further indicates that in 2013 inflation is expected to rise in the third quarter followed by an ease in the fourth quarter.