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Why Subbarao was right not to cut rates

May 22, 2015    

What an extraordinarily unpredictable man Reserve Bank of India (RBI)governor D Subbarao is. Despite loud roars from investors in recent weeks for action from the RBI in the form of another interest rate cut to revive a slowing economy, Subbarao held firm and kept the key policy rate - the repo rate - and the cash reserve ratio (CRR) unchanged. He almost never does what economists and markets expect him to do.

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