Chinese checkers

The 25 basis points rate cut by People’s Bank of China (from 6.56% to 6.31%), a first since the 2008 global economic crisis, is the most clear signal that India too—as the other engine of global growth—needs to get back into this role. Despite the comments by KC Chakrabarty, deputy governor of RBI, rates are hurting. China has made it clear through the cut that it is more concerned at this stage about pushing growth than about inflation. For PBC, compared to India, the decision was easier.

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