INSUBCONTINENT EXCLUSIVE:
Retail inflation came in below the RBI's medium-term target for the twelfth month in a rowConsumer inflation eased to 3.15 per cent in
July from 3.18 per cent in the previous month, government data showed on Tuesday
That meant that retail inflation - the rate of increase in consumer prices determined by the Consumer Price Index (CPI) - came in below the
at 3.20 per cent in July.The consumer inflation data supports the Reserve Bank of India's decision this month to cut the repo rate to a
nine-year low of 5.4 per cent
Repo rate is the key interest rate at which the RBI lends short-term funds to commercial banks.Analysts expect the central bank to cut rates
once again in its scheduled bi-monthly review due in October
The RBI has so far this year reduced the key lending rate by 110 basis points - or 1.1 percentage point.A poll by Reuters conducted during
August 7-8 predicts the RBI to ease its benchmark lending rate by 25 basis points to 5.15 per cent in October
If that prediction comes true, it would be a repeat of a cutting spree last seen in 2000-01.In its policy statement on August 7, the RBI
said it sees consumer inflation remaining within its target range over a 12-month horizon.The central bank projects retail inflation at 3.1
per cent in the second quarter and 3.5-3.7 per cent in the second half of the current financial year.Get Breaking news, live coverage, and
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