RBI quite timid in combating inflation: Jerome Booth

European stocks continued to drift with investors unwilling to make any daring moves after Moody's downgraded the sovereign ratings of six euro-zone countries and as doubts about the implementation of Greek austerity measures crept in.

According to Jerome Booth, head of research at Ashmore Investment, the important thing for EU is to avoid contagion from a Greek default. He believes there will be a clear distinction in the mind of investors between Greece and other countries, once the events in Greece come to some sort of conclusion.