Subbarao may have to Keep Rates Unchanged

.......Although the government has said it will lower subsidies through cash transfers, there are doubts about the scale of its operations. Yet another factor that will weigh on Subbarao's decision on Tuesday will be the Federal Reserve launching QE3+, or quantitative easing, ie, printing of more US dollars to buy government bonds. If this stokes commodity prices, including crude oil, it may delay cuts in India. But those worried about economic growth slipping to a decade low of about 5% this year, from 9% a few years ago, believe that it may be too late if the governor postpones a rate cut........

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