PM adviser Rangarajan says more interest rate cuts possible
NEW DELHI (Reuters) - The RBI could make more cuts to the repo rate if inflation remains on projected lines, the prime minister's economic adviser C Rangarajan said on Tuesday.
The Reserve Bank of India (RBI) reduced its policy interest rate by a widely expected 25 basis points on Tuesday. The bank took comfort from cooling inflation to make the first cut in nine months, in support of an economy headed for its slowest growth in a decade.
The RBI said there was increasing likelihood of inflation remaining range bound around current levels heading into the 2013/14 fiscal year, starting April.
(Reporting by Arup Roychoudhury; Editing by Frank Jack Daniel)
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Data released on Friday showing a slowdown in India's economy will put the Reserve Bank under renewed pressure to cut interest rates, while Prime Minister Narendra Modi takes his time over reforms needed for a revival. Full Article