India central bank may put rate cuts on extended pause after spike in inflation

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India central bank may put rate cuts on extended pause after spike in inflation
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A spike in India's retail inflation in December has raised the chances the ...

MUMBAI - A spike in India’s retail inflation in December has raised the chances the central bank will put rate cuts on hold for some time despite economic growth languishing at more than six-year lows.

The Reserve Bank of India has cut rates by a total of 135 basis points in five moves in 2019 and shocked markets by holding rates steady at its December meeting. At its December meeting, the central bank revised the CPI inflation projection for the second half of 2019/20 to 5.1-4.7% from 3.5-3.7% forecast at its October meeting.

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