In a massive liquidity push, the Reserve Bank of India has cut the lending repo rate by 50 basis points, to 5.5 per cent. This is the third consecutive rate cut by the RBI, which felt emboldened enough to call its market intervention a bold move. The two earlier rate cuts were of 25 basis points each. The one visible fallout was the repositioning of the monetary policy stance as neutral as against the hitherto tagged label of accommodative. In other words, the RBI has signalled there is limited elbow room for further rate cuts.

At one fell swoop, the RBI has signalled to the entire Indian banking ecosystem that an era of low........

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