India’s Rate-Cut Room Dented as Rupee Drops to Record: Economy

The slump in the rupee to a record low has narrowed the Reserve Bank of India’s scope to cut interest rates next week for a fourth straight meeting.

Governor Duvvuri Subbarao will keep the repurchase rate at 7.25 percent on June 17, 11 of 19 analysts said in a Bloomberg News survey. The rest called for a reduction to 7 percent. The currency’s 7.1 percent drop versus the dollar this quarter, the biggest in Asia, threatens to make imports more expensive.