A cut to grow

RBI does its bit to boost economic activity

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has delivered its second consecutive rate cut of 25 basis points each. The broad message in the latest policy is a continuation of the sharp shift that occurred in February, when the MPC not only cut the benchmark rate for the first time since August 2017, but also changed the policy stance from “calibrated tightening” to “neutral”. That stance has been maintained this time as well because the MPC perhaps wants more clarity on uncertain factors such as the status of monsoons, fuel price trajectory and the next