Cautious RBI signals just a 25 bps rate cut

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RBI Governor D Subbarao. RBI Governor D Subbarao.
SummaryConcerns over current account deficit might prompt RBI to limit a cut in policy rates to 25 bps.

the fiscal are down a bit, from 7.7% in the last round to 7.5% now. The inflation forecast for 2013-14 is 7%.

The RBI is cautious on the fiscal correction. While it acknowledges the correction, it says “sustainable consolidation would require bringing current spending, especially on subsidies, under control and protecting, if not enhancing capital expenditure”.

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