In continuation of the discussion on RBI cutting rates, the situation has changed because the US Fed cut rates. One unexpectedly large rate cut of 75 bps has taken place. What is more, the derivatives market suggests that more rate cuts are in store. Look at these probabilities:
This influences monetary policy in India and China. In both cases, pegged exchange rates induce a loss of monetary policy autonomy. Upholding the exchange rate peg will require cutting rates. In India's case, there is a large interest rate differential that (in any case) needed narrowing. See an edit in Indian Express and Omkar Goswami in Business Standard. In the Chinese case, the game of sterilised intervention - which used to be profitable since local Chinese rates were lower than the return on US treasuries - is now starting to cost serious money.
So expect moves in monetary policy amongst the peggers (though not the floaters, who have monetary policy autonomy) in response to the decisions of the US Fed. News begets news and volatility clusters.