India cbank chief: rate cuts to depend on current account gap also
MUMBAI Jan 30 (Reuters) - The Reserve Bank of India's future rate cuts will not only be driven by the inflation trajectory but also by the current account deficit, governor Duvvuri Subbarao said on Wednesday.
He was speaking to analysts a day after the central bank cut the key repo rate and banks' cash reserve ratio by 25 basis points each.
India's current account deficit widened to a record high of 5.4 percent of GDP in the September quarter as export growth slowed more sharply than imports, with a similar gap expected in the December quarter. (Reporting by Shamik Paul)