Rate cut not mother of all cures for economy


MUMBAI / CHENNAI: The RBI has done what it was bound to do in a downturn: lower policy rates to invigorate the economy. Until Wednesday, all attention was on a rate cut, which alone seemed to be the cure.
GDP growth was a pedestrian 6.1 per cent during the March quarter, private investment an abysmal 5.8 per cent, export growth fell to 10.2 per cent in June vs 18.3 per cent in March quarter, credit growth plunged and fewer jobs were created.
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