Why ration out rate cuts when slowdown is so sharp?

The direction is clear -- there will be more rate cuts but the pace will depend on the incoming data

There are two key takeaways from the Indian central bank’s fourth bi-monthly monetary policy. One, the monetary policy making body of the Reserve Bank of India (RBI) has acknowledged a sharp slowdown in the economic growth in Asia’s third largest economy; and, two, the rate cutting cycle has not ended as yet; there will be more rates cuts over the next few months.

For the record, the RBI has yet again cut the policy rate – this time by 25 basis points (bps) to 5.15 per cent, its lowest since March 2010, as is continuing with its accommodative policy stance. With