(MENAFN) Official data showed that India's industrial output shrank in October, while inflation hit a three-year low, raising hopes of rate cut in 2015, Arab News reported.
Production by India's factories, mines and utilities declined 4.2 percent in October on year. Meanwhile, inflation fell to 4.38 percent in November, down from October's 5.52 percent.
The Indian Finance Minister has indicated he would favor a cut in borrowing costs, held at 8.0 percent since last January, to boost investment and consumer spending.
"India should be a big winner from the global decline in energy prices, which will support consumer spending power and provide the Reserve Bank of India with room to loosen monetary policy," PNC Financial Services analyst said.
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