OK. Happy New Year. If my wishing does any difference to your perception of the coming of and the events occurring during a new Gregorian calendar year, so be it.
It is highly unlikely that your audience will watch the same movie thrice. What if you split it into three, and release them in 3 consecutive years? 3 blockbusters, 3 billion dollars (May not be accurate to the last dollar/box-office stat but drives home the point, doesn’t it?)! This is what Peter Jackson and party are doing to us. Putting us in a pony-wagon for a journey from New York to Washington in the 21st century so that we consume a lot more of his muffins than we would on a regular flight.
RBI may again hike rates, Rajan to go ahead with squeezing the economy’s neck trying to force it to loosen its grip and let go of the inflation. While he’s doing the best within his capacity, the onus is on the government to ease supply side constraints and cut unnecessary spendings and subsidies.
However, a 0.25 bps hike may stun the economy – slowly unwinding its wrath, and also further lowering the IIP (knocked down by 1.8% already). Even as Dr. Rajan consistently hiked rates since he took charge, consumer price inflation did hit a 9 month high.
No good signs on the horizon as the government shifts its focus to the elections just like Sauron’s eye shifting its gaze from Frodo on Mount Doom to the armies of men at the gates of Mordor. It didn’t end well.