RBI Signals India Rate-Cut Limits as Policy Revamped: Economy

The Reserve Bank of India signaled elevated inflation is limiting room to cut interest rates even as its focus may shift to spurring growth as the government implements an overhaul of economic policies.

“The scope for supportive monetary policy action is constrained,” the Reserve Bank of India said in a report yesterday ahead of its interest-rate decision in Mumbai today. “However, as reform actions get executed, monetary policy could increasingly focus on growth revival.”