India's central bank said to be cautious despite pressure for interest rate cuts

Mumbai

THOUGH the Reserve Bank of India (RBI) is expected to cut interest rates next week by a quarter per cent to a four-year low, officials say concern over prices makes it likely to resist political pressure for significant easing in the coming months.

In growing contrast with the government, which is desperate to accelerate a sluggish recovery, an increasingly independent RBI under governor Raghuram Rajan remains focused on a long-term inflation target of 4 per cent and ending decades of damaging price volatility.