While retail inflation in June dipped to 1.54 per cent, the growth in industry output for May languished at 1.7 per cent, latest data released by the government today showed. A single dissenting voice had favoured a deep repo rate cut at the RBI's monetary policy meet on June 6-7, where the six-member committee kept the benchmark rate unchanged at 6.25 per cent over fears of high core inflation. With retail inflation below the RBI's mid-term target of 4 per cent for the past eight months, industry participants and the government will raise the pitch for a rate cut to support economic expansion. "It is unfortunate that the RBI's stance to maintain the status quo has hit the expectations of industry though there was a room for rate cut," Assocham said. "We do expect a rate cut of 25 basis points in the August policy," said Anjali Verma, an economist with Phillip Capital India.

Source: The Telegraph July 12, 2017 19:17 UTC