Low core inflation, stalled growth - RBI should have cut rates

The Reserve Bank of India (RBI) has chosen to hold both the repo rate and the cash reserve ratio steady. There are reasons why it might have thought that monetary loosening is a bad idea. Prominent among them is the concern that the euro zone will not be able to get its act together on Greece quickly enough to ensure that liquidity does not freeze up worldwide the way it did in 2008. It might be keeping its powder dry for that eventuality.

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