Markets have been hoping that the RBI would intervene and cut rates for some time now but nothing has materialized. In the aftermath of the Fed rate cut in early March-20, there were strong expectations that the RBI would follow suit. But I frankly think that the time to act is now. It is incorrect to argue that rate cuts by the US in the month of March did not prevent the vertical fall in the Dow Jones Index at it fell by 29% from its peak levels. From a longer term perspective, economists also argue that rate cuts have not propped up growth in the US. But that is again an incorrect argument. The reason RBI must think of a rate cut is that it already paused in December and February. The main purpose of the rate cut at this juncture is twofold. The first purpose is to synchronize monetary policy with the global central banks. That is a safer approach in such challenging times. The second purpose is to boost confidence of consumers and businesses and that can be best achieved if the RBI gives a clear signal that it is willing to loosen. RBI must not wait till the April policy announcement and do the rate cut right away.