Little while ago, I wrote commenting on the interest rates in India and Nigeria, stating that in my opinion the central bank rates are too high.
I note that in India, the Index of Industrial Production has fallen from 5.9 percent in November to 1.9 percent in December. This indicates the economy is cooling down because industry and commerce cannot afford to borrow money at such high interest rates.
Having met its aim of reducing inflation, which is well under check, it is essential the Reserve Bank should cut the interest rate.
Both India and Nigeria are blessed with rich resources and talented people, therefore they can both afford to follow the major industrialised nations in their interest rates policies, in my opinion. There should not be such a huge differential.