Rate cut losing its potency as an instrument to stimulate growth: Analysts

People remain a little skeptical on how much rate cuts can aid economic recovery at a time when coronavirus is getting a tighter grip on the world

In a bid to battle the economic fallout emanating from deadly Coronavirus (Covid-19), the US Federal Reserve (US Fed) cut its benchmark policy rates by 50 basis points (bps) in the range of 1 to 1.25 per cent on Tuesday. However, the emergency rate cut failed to cheer investors as US stocks tumbled. Market participants worried whether pumping more money into financial markets would address the central problem – a cut in business activity as workers and consumers stay home.

Back home, the Reserve Bank of India (RBI) said on Tuesday it was ready to ensure that the markets ran