Monetary Policy 2012 13

Subbarao's Surprise: A 50 bps cut, but expect no more

There's enough in the policy to suggest RBI's rate cut is a contextual response, and it continues to see risks ahead

Subbu's subtext: Don't believe in FM or rate cut, but what to do?

The RBI unexpectedly cut rates by 50 basis points. Is Subbarao abandoning his fight against inflation or is the message something else?