India’s policy of rupee appreciation has had the unfortunate, and predictable, effects of not only hurting the Indian economy but also benefitting the Chinese economy.
Surprisingly, neither inflation nor GDP growth play a role in how the repo rate is set - - this is overwhelmingly explained by just money supply growth.
We have just witnessed some defining moments in our economy, and polity. Expect voters to vote in performance, not ideology; expect large interest rate cuts, and even some tax cuts.
