Why RBI has to cut interest rates?

This is the most heated argument doing rounds in the hostel with Rajat at one end asking all sort of fundamental (innocent ones with a lot of 'Why's) questions and with Sunny and Shila at the other end trying to quench his thirst for macroeconomics by throwing all sort of jargons. This is something that Prof Banik should feel proud about because out of all things forgotten at the end of first two trimesters, Economics comes first and well if you thought it's OB then believe me it comes way behind economics (I still remember our Professor telling us that may be after 10 or 20 years, HR is what we will need most, but well that is still 10-12 years right?). Did you also mentioned stats? well, can't say that you are wrong!

Well, we haven't answered the original question yet, right? Anyways reserving that for tomorrow's morning lecture. Hopefully the discussion will get some more participants to pitch in.