Reserve Bank, refocus

When the world economy faced a crisis in 2008, India prided itself on escaping relatively unhurt. Now that the Indian economy is slowing down, owing to the impact of both the global slowdown and uncertainty, and the policy framework in the domestic economy, a part of the blame is being put on monetary policy. It is claimed that monetary policy is excessively tight and has caused the decline in investment. It is further argued that a cut in interest rates will solve the problems of the Indian economy and push up growth.

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