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RBI rate cut not seen on December 18: Rangarajan
December 14, 2012 / 6:12 AM / 5 years ago

RBI rate cut not seen on December 18: Rangarajan

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.

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

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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