Economic conundrum leaves little luxury for RBI’s Subbarao2 min read . Updated: 19 Mar 2013, 12:29 PM IST
Interest rates seem to have a long way down to go, but central banking is not about such neat symmetry
The Reserve Bank of India (RBI) has done what just about everybody expected it to do. It has cut the repo rate by another 25 basis points, which means that the Indian central bank has cut its key policy rate by a cumulative 100 basis points since January 2012. This monetary easing can be compared with the 375 basis points of rate hikes after inflation began to accelerate during the rapid economic recovery from the financial crisis.
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