Can further rate cuts revive investor sentiment?

As the economy weakens, pressure is building on the central bank for another rate reduction

Published 2 years ago on Sep 11, 2019 1 minute Read

Mahendra Jajoo, Head-fixed income, Mirae Asset Global (India)

Further rate cuts will have a positive impact as the economy is in a very bad shape. GDP growth at 5% was at a six-year low in the June 2019 quarter. Exports are facing structural issues, the government is hamstrung by fiscal constraints and demand has temporarily slowed down because of structural reforms such as GST. Hence, there is just one area with immediate room to act — interest rate cut. Currently, India’s real interest rat


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