The slack season monetary policy announcement, due on Tuesday, will be one with a difference. The policy will, perhaps for the first time, be a document independently brought out by the Reserve Bank of India -- with no significant inputs from the North Block.
The central bank governor Y V Reddy rushed to New Delhi on Saturday to talk to the finance ministry.
These pre-credit policy meetings are customary as it helps the RBI get a perspective on the government's fiscal policy, in order to ensure alignment with the monetary stance.
This time round, however, with only a caretaker government at the Centre, it is likely that Reddy's trip to the capital may not have been fruitful. Inside sources said Reddy may not get an audience with members of the new coalition either.
So the document has been prepared without the foreknowledge of the economic policy position of the common minimum programme that is being thrashed out by the Congress and the Left Front.
This situation is expected to have a direct impact on the central bank's policy stance on foreign direct investment. As it is, the left parties are not too gung-ho on foreign capital entering