RBI rate cut not seen on December 18: Rangarajan

NEW DELHI Fri Dec 14, 2012 11:38am IST

A vendor rests next to sacks of onions at a wholesale vegetable market in Kolkata March 16, 2012. REUTERS/Rupak De Chowdhuri/Files

A vendor rests next to sacks of onions at a wholesale vegetable market in Kolkata March 16, 2012.

Credit: Reuters/Rupak De Chowdhuri/Files

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NEW DELHI (Reuters) - The prime minister's economic advisor C Rangarajan said on Friday he doesn't expect the RBI to cut interest rates at its next policy meeting on December 18.

Asia's third largest economy is headed for the weakest full-year growth in a decade, at about 6 percent, far below the near double-digit pace before the global economic downturn.

But despite the slowdown, the Reserve Bank of India has not lowered interest rates since April because inflation has remained near 7 percent, exacerbated by a weak rupee that has added to the cost of fuel imports. (Reporting by Arup Roychoudhury; Editing by Jijo Jacob)

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