Sir — It refers to the editorial, “Note of caution” (August 3). With crude oil prices going upwards, it has direct impact on trade deficit and retail inflation as well. Not to mention, the US is also putting pressure on India for cutting oil intake from Iran.

We also know that there are few States which are yet to pass the recommendations of Seventh Pay Commission which will further raise inflation.

So with this backdrop it is welcome that the Reserve Bank of India (RBI) has raised the repo rate second time in succession, to keep inflation under check.

Tough call