India PM advisor says more interest rate cuts possible
NEW DELHI (Reuters) - India's central bank could make more cuts to the repo rate if inflation remains on projected lines, the prime minister's economic advisor 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.