Rate cuts in time to keep the economy afloat

The monetary policy committee’s mandate is to meet once every quarter at minimum but sighting the growing tensions in the economy when the macro indicators were still pointing at a healthy growth rate for the coming financial year and trying to make a sales pitch with the fastest growing market in the world, the central bank was vary of the micro-economic indicators which had been hit by the policy initiatives of the government and the lack of resources for the rural poor to participate in the economic activities due to severe agrarian distress along the lines of high rate of unemployment and reduction in per capita with respect to the inflation happening on the retail and wholesale market, the MPC piped its initiatives from inflation targeting to controlling the market stimulus and infusing capital adequacy as well as higher liquidity into the market on the lines of global central banks choosing the same trends as the federal treasury as well started it’s rate cuts soon after making the market volatile to robust changes brought in through the methods of policy correction and in Stark contrast to what was happening the investor sentiments dwindled between the east and the West to find a safe opportunity to invest and keep track of revival for the slowing economies in the world.

China by far was the most hit and India has been hit pretty bad as well, but the rate cuts initiated by the MPC have taken the total value of 135 basis points or 1.35% in the repo rate thus infusing enough liquidity in the market to sustain the given macroeconomic conditions and the global economics of the world.