Photo: Aniruddha Chowdhury/MintToronto: If India’s central bank wasn’t feeling the pressure to cut interest rates after last week’s imbroglio with the government, it may be feeling now. Consumer price inflation in the $2 trillion economy slid to new record low of 2.18% in May, figures showed Monday, below the 2.4% estimate in a Bloomberg survey of economists. At its interest rate announcement on 7 June, the RBI said it’s unclear whether such forces are transitory. Negative territoryAnticipation of an interest rate cut has helped spur demand for Indian assets. Arguing that food inflation will stay down is tantamount to saying rural income and demand will also continue to decline, he said.

Source: Mint June 13, 2017 05:03 UTC