Torsten Slok of Deutsche Bank sends along the following fascinating graphs. The titles seem a little off. Yes, the market is expecting rate cuts (forward rate) but the market has been exactly wrong about everything for 10 years (and longer) first forecasting the recovery that never came, then forecasting much slower interest rate rises than actually happened. Survey expectations seem to match the forward curves well except perhaps at the very end.

In an interview with Reason magazine in 1980, Thomas Sowell remarked that the way to get rid of poverty was “to hold a meeting of all the leading experts on poverty somewhere in the middle of the Pacific and not let them go home for 10 years.” Having relieved society of their counterproductive suggestions, “when they came back, they would discover there was no more poverty.”

Next week’s figures are likely to show that consumer price index (CPI) inflation is below its 2 per cent target, which means that a decade of near-zero interest rates has not led to high inflation.

Former RBI Governor Raghuram Rajan suggested that India needs to boost its pace of growth, especially in job creating sectors which in turn merits a whole new generation of reforms as the old ones have lost momentum.