IS IT TIME FOR THE RBI TO CUT RATES MORE AGGRESSIVELY?

Over the last few weeks there have been some key data points that have raised concerns over the pace of rate cuts adopted by the RBI. It may be recollected that back in February 2017, the Monetary Policy Committee (MPC) had shifted its monetary stance from  “Accommodative” to “Neutral”. Over the last few quarters there have also been some real concerns about falling GDP growth rate. For example, the GDP growth rate for the first quarter ended June 2017 has come in at a low of 5.7%, which is a full 100 basis points lower than the Chinese rate of growth. While this fall in growth can be partially attributed to the demonetization, there is obviously more to it than meets the eye.                                                                                   Source:-Angel Broking Blog.