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India interest rate cut shows economy needs support: finmin adviser

Tuesday, June 2, 2015 - 15:40
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The Reserve Bank of India's (RBI) decision to cut interest rates shows the economy needs support, Chief Economic Adviser Arvind Subramanian said on Tuesday.

[NEW DELHI] The Reserve Bank of India's (RBI) decision to cut interest rates shows the economy needs support, Chief Economic Adviser Arvind Subramanian said on Tuesday.

The central bank cut interest rates for a third time this year on Tuesday, taking advantage of subdued inflation to boost an economy that many economists doubt is doing as well as latest impressive growth numbers suggest.

Mr Subramanian also said the government would try to contain inflationary risks if the summer monsoon rains turn out to be weak.

REUTERS