(MENAFN) he Reserve Bank of India is unlikely to loosen policy before October, particularly with retail inflation at an eight-month high after food prices spiked, a Reuters poll of economists found.
All but four of 51 forecasters polled expect the RBI to hold its key repo rate at 7.25% on August 4. It has already cut the rate three times this year to loosen credit and boost slowing growth in Asia's third-largest economy.
After easing policy in June, RBI Governor Raghuram Rajan said further moves would depend on changes in food prices, which matter immensely for India where over a quarter of the population survives on a maximum of 74 US cents a day.
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