A rate cut will be a signal that the central bank has our backs.
Reports indicate that the Monetary Policy Committee meeting has already taken place and we now await the RBI announcement. While consumer price inflation was at 6.58 percent in February, that’s yesterday’s news.
Crude oil prices have collapsed and that will pull down headline inflation. More importantly, a rate cut will be a signal that the central bank has our backs.
Here’s how much other central banks have cut their rates in response to the economic damage caused by the COVID-19 pandemic:
Read the full text moneycontrol