Or does it indicate the government is seriously concerned about the plight of the public amidst rising inflation–as was made clear by the FM last Monday when responding to an X user’s call for relief to the middle class from rising inflation, she said she understands the concern and that the government listens to citizens voices and thanked him for his understanding and inputs.
An RBI observer, who doesn’t want to be named, said, “government calls for rate cuts mostly stem from the falling macro indicators. Of course, the government doesn’t want to admit that all is not well on the economic front.
After all, if at all the rates are lowered say from February, its impact will take at least three to six quarters to manifest in macro numbers. “So, probably the government is trying to ensure that if at all growth falls short of the forecast this fiscal, which is more likely, it can take comfort that next fiscal can offset the losses of this fiscal,” he told TNIE.
