When the RBI didn’t cut interest rate last week, Arvind Subramanian protested loudly, saying the economy had decelerated from last July, and substantial monetary policy easing was warranted . But now that the pundits of India’s economic establishment are talking again, all investors hear is discord. The biggest casualty of the war of words between the finance ministry in New Delhi and the central bank in Mumbai is India Inc. Gadfly was surprised when, amid an extreme cash crunch in December, the Reserve Bank of India (RBI) didn’t cut its policy rate by even a quarter percentage point. Investors don’t particularly care about the timing of India’s rate cuts.

Source: Mint June 13, 2017 02:48 UTC