Here's Why an RBI Rate Cut May Not Be a Done Deal

The video discusses an economist's prediction that the RBI will not cut rates, citing factors like demonetization's unclear impact and recent budget measures. It highlights issues with monetary policy effectiveness and structural inflation. The demonetization program's limited success in curbing illicit wealth is noted, though it may boost digital transactions. Near-term demand disruption is expected, but a recovery is anticipated.

What are the factors suggesting that a rate cut by the RBI is not a done deal?

How has the manufacturing PMI changed since the RBI's last meeting?

What measures were announced in the budget to boost demand in rural areas?

What is the impact of the monetary transmission mechanism on interest rates?

What has been the effect of demonetization on illicit wealth in India?

In what ways might demonetization have a positive long-term impact on the economy?

What are the expected effects of demand disruption caused by demonetization?