RBI KEPT THE RATES UNCHANGED !!

RBI has kept the rates unchanged. Inflation is cooling down and the growth of economy is not in a better position. So many expected RBI to decrease the prime rates. But RBI has taken the hawkish stance and kept the prime rates unchnaged.CPI Inflation has fallen from 11% to 8%. But still the interest rates are kept unchnaged. Higher the interest rates greater the impact it leaves on the growth of economy. If the interst rates are kept low there would be more flow of money in the economy and it would lead to more investments. In all the economy would grow. But the recent act of  RBI leaves an impression that RBI prferes inflation over growth .