India’s Inflation Eases, Supporting Rate-Cut Calls Before Review
Fishermen tend to their nets near the Kasimedu fish market at the Royapurum fishing harbour in Chennai, India.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India’s consumer inflation eased to a 14-month low, supporting calls for an interest rate cut when Governor Urjit Patel reviews policy next month.
Economists are concerned that Prime Minister Narendra Modi’s surprise cash clampdown will slow both growth and inflation in the $2 trillion economy. The softening price pressures will boost calls for monetary easing and investors will closely watch gross domestic product data due Nov. 30. Patel’s rate-setting panel, which lowered the benchmark repurchase rate to 6.25 percent from 6.5 percent in October, is due to review policy Dec. 7.