Dear Mr. Rajan, You are being asked, no, told, no, ordered to cut rates today. This almost sounds like something you should rebel against, because no one orders you to do anything. But indeed, this isn’t about being overly sensitive to what some random joker has to say, and there are a lot of random jokers out there. I think you’re going to cut rates by 0.25% . Not because you have been ordered to, but because you spent the last two years making the RBI predictable and based on what you said, you’ve got the data you need for that rate cut. If you’ve made it really clear that a) you want banks to follow up by cutting their base rates and b) inflation should remain under control, then we perhaps have to grudgingly say, although my heart isn’t in it, that the data says yes. Not all banks have cut rates.… (Read On…)
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