Page 4 - September 2017 Digital

® Editor's Space Late Cut Published by: Playing a Late Cut in cricket is very strategic Highland Media Publishers Pvt. Ltd. but requires the batsman to read the ball Registered Office: well, which very few cricketers are adept 609, 6th Floor, Swastik Chambers, Sion-Trombay Road, Chembur (East), Mumbai – 400 071. at, and if you play it well you could hit Tel: 022-25271902 a boundary. Likewise RBI Governor Urjit Patel waited till the last moment -- as Editor: Vivek Lakshmanan long as he could -- before cutting the key editor@constructionopportunities.in interest rate by a quarter point to 6 per Associate Editor: Satish P Chavan cent, early August. However Urjit’s late edit@constructionopportunities.in cut has failed to galvanize the economy, but his saving grace is inflation is projected to remain stable in Chief Executive Officer: V Anand anand@constructionopportunities.in the next few Quarters. Senior Editorial & Sales Co-ordinator: The decision by the RBI’s Monetary Policy Committee (MPC), Asif Padwekar by a 4-2 vote, to cut the repo rate by 25 basis points — coordinator@constructionopportunities.in while maintaining a neutral policy stance — was expected Head Circulation & Subscription: after inflation fell to a five-year low of 1.25 per cent in the 12 Subhash Bhogale months to June, which opened some space for a rate cut. It support@constructionopportunities.in would be difficult to blame the Central Banker for delaying All rights reserved. While all efforts are made to the cut in interest rates. Inflation remains tricky to handle and ensure that the information published is correct. currently it is difficult to sift out other extraneous factors like COnStRuCtiOn OPPORtunitiES holds no demonetization to conclude if the actual inflation (which was responsibility for any unlikely errors that might below RBI projections) was structural or just a passing phase. occur. For a Central Banker, keeping inflation under control is a first Printed and Published by Vivek Lakshmanan on priority over all other imperatives, because curbing it is the behalf of Highland Media Publishers Pvt. Ltd., sole responsibility of the Governor. The RBI governor expressed printed at Anitha Art Printers, 29/30, "OASIS" Next concern that CPI inflation might inch up to 4 per cent by Q4, to Vakola Market, Nehru Road, Santacruz (East), Mumbai – 400 055 and published from so he wants enough room then to cut the rate again when 609, 6th Floor, Swastik Chambers, Sion-Trombay CPI inflation undershoots their estimates, which has been the Road, Chembur (East), Mumbai – 400 071. case in the recent past. Editor: Vivek Lakshmanan The information on products and projects on A neutral Central Bank will always keep interest rate differentials offer is being provided for the reference of the in favor of the economy to whet FDI appetite, but one needs readers. However, readers are cautioned to to differentiate between liquidity management and actual make inquiries and take decisions on purchase inflation. Governor Urjit Patel was right in playing the late cut or investment after consulting experts on the subject. COnStRuCtiOn OPPORtunitiES and maintaining his anti inflationary stance, because he needs holds no responsibility for any decision taken to keep a few aces at hand to galvanize the economy in case by readers on the basis of information provided it is slowed down again by inflationary pressures. herein. For digital edition log on to: www.constructionopportunities.in Vivek Lakshmanan 4 construction opportunities|SEPTEMBER 2017