Lower prices and borrowing cost are more obvious...

Lower prices and real wages are important not the inflation and nominal wages and incomes because it is the actual (real) purchasing power which is important for spending, government would also have to spend less if prices are low, deficit would be low. Lower prices would also increase real savings and investment spending...

If policy makers commit lower prices in the long run it could increase spending even if income is fixed due to wage rigidity and lower borrowing cost would help increase supply and lower prices further...

They should let demand/supply/price/unemployment/employment/investment increase-fall upto zero real interest rate and zero nominal interest rate 0=0 which is the limit for full investment employment or full employment of capital and labour, too, it would help demand/supply adjustments at a higher level, at which we could achieve full-employment and price stability and full growth...

If they want to achieve growth they might commit lower prices, interest rate cuts and/or tax cuts...

We cannot deny that higher prices also increase supply and in the absence of exact data on demand investment and employment might increase demand and supply and help keep price stable would help equalize demand and supply...

There is a constant adjustment in demand/supply/prices/unemployment/investment/employment to achieve the natural real rate of interest at which there is neither inflation nor deflation and there are price stability and full employment and full investment and full growth based on automation/innovation and the population growth rate which might further reduce price-level and increase demand and supply and the economic growth rate and the global growth rate...

****If foreign investment is allowed despite inflation and expectations, why domestic investors hold? There are no external capital controls... INDIA has enough foreign exchange reserves; currency is going strong hurting exports... A rate cut would boost both domestic investment and depreciation and exports... Monetary Policy is not consistent to achieve the underlying objective, growth...