Task cut out for MPC after Budget's consumption boost as RBI decision nears

But monetary policy decisions are complex and there is merit in assessing the "right time" while weighing the cost and benefits of such moves

The budget has done its job. The big ask was for a consumption boost, and the finance minister delivered. Now, it’s the Reserve Bank of India’s (RBI’s) turn to chime in.  

The central bank is widely expected to cut the policy rate this week, the first such move in almost four years. The chorus for a rate cut stems from the need to boost mass consumption, rekindle animal spirits in the corporate sector, and jump start the investment cycle. With inflation showing signs of moderation and the path towards 4 per cent becoming visible, the space for the RBI to