Letter to BS: Highly naive to assume rate cuts will help arrest slowdown

Ironically, all that the RBI proposes, the government eventually disposes with some other obligations ranking high on its mind

With reference to “Monetary Policy Review: Another rate-cut may not help Indian economy” (October 3), one tends to agree with the author's well-argued observations on this highly contentious matter even as the nation and the Reserve Bank of India (RBI) grapple with the challenges faced by the economy. It may be recalled that RBI Governor Shaktikanta Das had clearly stated that there’s enough room for a rate cut, especially when growth has slowed down. The government had also responded to the worrisome economic scenario with fiscal measures that are likely to stress its finances, including a big cut in the