Dear governor, why save the bullet? Use it now

Beyond perking up the economy, the RBI needs to ensure proper functioning of the bond market, the credit market and the larger financial system

On March 8, Uday Kotak, executive vice-chairman and managing director of Kotak Mahindra Bank Ltd, tweeted: “Coronavirus roils global financial markets, sparking chatter of coordinated monetary easing by central banks. Reminds me of Mark Twain’s quote, 'To a man with a hammer every problem looks like a nail’.”
 
It got a huge response — 15,700 likes and 3,800 retweets.
 
Clearly, there are many takers for Kotak’s belief. But central banks globally don’t seem to care much about Mark Twain. In March, at least 15 central banks have cut their policy rates, starting with the Reserve Bank of Australia.