Subbarao says inflation still high - report

BANGALORE Wed Jan 16, 2013 4:26pm IST

1 of 2. Duvvuri Subbarao, governor of the Reserve Bank of India, speaks during 'The Citi Series on Asian Business Leaders' at the Asia Society in New York, August 29, 2012.

Credit: Reuters/Andrew Burton/Files

BANGALORE (Reuters) - India's inflation has come off a peak but is still high, Bloomberg quoted the Reserve Bank of India Governor D. Subbarao as saying, a comment that is likely to cool expectations for a rate cut later this month.

"When growth is slowing down you can stimulate the economy either by monetary easing or by fiscal stimulus, but both monetary and fiscal side have no room for stimulus. So that is the big concern," Subbarao told management students in Lucknow on Tuesday, the news agency said.

Expectations for a rate cut had gathered momentum this week after headline inflation slowed to its lowest level in three years.

The central bank, which is scheduled to review policy on January 29, has kept its key borrowing rate at 8 percent since April, defying calls from business and politicians to do more to cushion the economy from a downturn that has dragged it towards its slowest growth rate in a decade.

(Reporting By Harichandan Arakali; Editing by Ranjit Gangadharan)

FILED UNDER:

Economic Pulse

Reuters Showcase

Reaction to Budget

Reaction to Budget

India budget unlikely to impact credit rating - agencies  Full Article 

PMI Data

PMI Data

Factory activity growth slows to five-month low in Feb  Full Article 

Documents Leaked

Documents Leaked

Indian Oil suspends official for leaking information - sources  Full Article 

Coal Auction

Coal Auction

India examines coal mine bids amid reports of discrepancies  Full Article 

Ola Buys Rival

Ola Buys Rival

Ola buys rival TaxiForSure for $200 million  Full Article 

Priority Sector

Priority Sector

RBI revises priority sector lending norms  Full Article 

Global Economy

Global Economy

Global stimulus swells as China eases, ECB to start soon on QE  Full Article 

Steel Industry

Steel Industry

Steelmakers hit by uncertainty over import duty hike   Full Article 

HP Buys Aruba

HP Buys Aruba

HP to buy Wi-Fi gear maker Aruba Networks for $2.7 billion  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage