Should RBI cut interest rates?

Critical components of core inflation have shown a sustained decline over the last few months

Which side of the somewhat overheated battle over inflation and interest rates one finds itself on depends on a few things. To begin with it is important to recognise the fact that the Reserve Bank of India (RBI) now seems fixated on getting inflation down to an average level of 4 per cent over the long term, choosing not to take advantage of the mandated 2 per cent leeway on either side of this level. This means that a few months of extremely low inflation data is unlikely to sway its decisions substantially.
 
In taking this long view, the