Pursuits
India Cuts Monsoon Forecast as Rajan Links Rates to Rainfall
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The monsoon rainfall in India will be deficient for a second straight year as the emergence of an El Nino event threatens weather worldwide, potentially hurting agriculture output and accelerating food inflation.
The rainfall may be 88 percent of a 50-year average of 89 centimeters (35 inches) between June and September, less than the 93 percent predicted in April, Earth Sciences Minister Harsh Vardhan told reporters in New Delhi on Tuesday. The forecast came less than two hours after central bank Governor Raghuram Rajan cut interest rates and said further action will hinge on the monsoon rains.