Indian FinanceMin Official: India's central bank has room to further cut policy rate

In an interview with NewsRise on Friday, a senior Indian Finance Ministry official said that the Reserve Bank of India (RBI), India’s central bank, has room to further reduce the key policy rate in its next monetary meeting next month, in a continued to effort to ramp up the economic growth.

Key Quotes:

“There is certainly room available on the monetary policy side as real interest rates remain high.”

“Despite deep interest rate cuts, a sluggish transmission by the banks remains a cause of worry for New Delhi.”

“Banks have so far passed on only 35 basis points-to-40 basis points.”

"In the long-term, we expect food inflation to remain suppressed."

• India's economy to expand 4.7% in September quarter – Reuters poll

On the above comments, the Indian rupee keeps its offered tone intact, keeping USD/INR near four-day tops of 71.74 after having witnessed strong support at 71.50 levels.