The Reserve Bank of India (RBI) is likely to cut interest rate as the wholesale price-based inflation is expected to decline further to 4.3 percent in August, Moody’s Analytics said on Friday.
“India’s wholesale prices likely fell 4.3 percent on year-on-year in August, a further decrease from last month’s surprise 4.1 percent decline. Energy and manufactured-good costs are expected to continue their decline, while food prices will likely fall steeply as a result of base effects,” it said.
At the same time, retail inflation also slipped to a record low of 3.78 percent in July.
It further said “the RBI paused its monetary easing cycle, but we expect there will be further cuts in 2015 as inflation continues to fall.”
India Inc. has been pitching for a rate cut by the RBI to spur growth and investment.
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Updated Date: Sep 12, 2015 13:12:35 IST