That monsoon determines the fate of millions of farmers in India is an old story.The latest is the byte of the Reserve Bank of India (RBI) Governor D. Subbarao today when he said “the performance of monsoon would be an important factor in determining the central bank’s policy in the next three months.”

Subarao,who delivered a lecture on ‘India’s Macroeconomic Challenges: Reserve Bank Perspectives’ – on the occasion of Institute of Public Enterprise’s Golden Jubilee celebrations in Hyderabad said that the banks track monsoon like millions of farmers across the country.

“ So, monsoon outlook and monsoon performance is going to be an important factor in determining the bank’s policy in the next three months,” he said.