The Reserve Bank of India (RBI) stood on the sidelines for much of 2012 as worries over runaway inflation trumped growth concerns. Now as price pressures abate, the central bank is expected to step up monetary easing significantly to revive flagging growth in Asia’s third largest economy.
Experts forecast the RBI to cut its benchmark interest rate by up to 100 basis points to 6.75 percent by the end of the year, following a 25 basis point reduction in January – the central bank’s first such move in nine months.
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