The Reserve Bank of India (RBI) is now facing the classic dilemma for any central bank in a country with a relatively open capital account. This newspaper continues to stick to its October call that there is a cautious case for a rate cut. One easy measure of this is the growing gap between the policy interest rate and the yield on the benchmark 10-year bond. The Reserve Bank of India (RBI) is now facing the classic dilemma for any central bank in a country with a relatively open capital account. Should the monetary policy committee cut interest rates?

Source: Mint December 04, 2017 19:52 UTC