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Emerging Asia Economics Update

Emerging Asia Economics Update

Further rate cuts in India imminent alongside fiscal easing

With the economy reeling from the slowdown overseas and a domestic credit crunch, and with limited room for fiscal easing, the Reserve Bank of India (RBI) will cut rates fairly soon. We think the RBI could cut the key repo rate by 50bp as early as next week, following the government’s presentation of the interim budget for the 2009 fiscal year on Monday.

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