Slowdown blues: RBI rate cuts not effective anymore, say analysts

Analysts want RBI to look at 'unconventional' monetary policy measures for a revival nudge

Analysts have started doubting if the interest rate cuts alone, beyond a point, are effective anymore when the economy is in a contraction mode, saying that the Reserve Bank of India (RBI) must look at other measures to nudge for a revival.

The government, meanwhile, will have to do much more as the economic packages announced remained inadequate to pull companies out of the slowdown pangs.

“While the RBI will keep interest rates under control, it appears unwilling to take on any credit risk on its own books. In turn, the finance ministry seems unwilling to offer any comprehensive package