RBI is way behind the curve

China just reduced interest rates by 25 basis points, the first reduction since 2008. Australia has reduced its interest rates twice in the last month by a cumulative 75 basis points. These decisions have been applauded by all, governments, investors and analysts. RBI reduced interest rates by 50 basis points near the end of April and most analysts (especially those belonging to foreign banks) were severely critical of the RBI decision. Why this asymmetrical treatment? Sometimes I half-believe in conspiracy theories interested in keeping Indian growth down so that Indian governments will be less arrogant!

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