India output growth flat, adds to BRIC straggler's gloom

.....That has spurred expectations the central bank will cut its repo rate by 25 basis points (bps) to 7.75 percent next Monday, adding to a 50 bps cut in April. But the RBI faces tough choices. Several economists warned that a rate cut without policy measures to reduce supply bottlenecks will drive inflation higher. "Monetary easing to boost aggregate demand without a supply response will prolong the fight against inflation," said Rajeev Malik, senior economist at CLSA Singapore.........

 

Read........