RBI unexpectedly cuts rates as elections loom
Inflation at lowest point for 18 months, but cut will be welcome news for Modi administration
The Reserve Bank of India (RBI) cut its headline rate today (February 7), abruptly reversing its tightening stance and easing monetary conditions just a few months ahead of national elections.
The cut may signal that newly appointed governor Shaktikanta Das is more amenable to the government’s wishes, after previous governor, Urjit Patel, was forced out in December 2018.
“It is vital to act decisively and in a timely manner to address the objective of growth, once the objective of price
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