Observations and suggestions from Chief Economist RBL Bank [1] last 12 months –India’s annual merchandise imports $830 billion and exports $476 billion [2] Forward book as of August swelled to $200 billion– very premise of currency depreciation to be contained via FCNR has been short lived [3] Why RBI stopped at 25 when perhaps 50 bps was needed ? Was it because transmission could be slow — because of huge unabsorbed liquidity? Article Courtesy BusinessLine