India opens door for more rate cuts

MUMBAI: india’s deepening economic slowdown is likely to throw open the door to more monetary policy easing this week.

The Reserve Bank of india will meet days after a report showed growth collapsed to 4.5% in the July-september quarter, the first time it’s been below 5% since 2013.

Led by Governor Shaktikanta Das, the RBI already has cut interest rates by 135 basis points in five moves this year, the most by any Asian central bank. Policy makers have had their focus squarely on reviving Asia’s third-largest economy, and last week’s weak data gives them added reason to continue pushing for growth.

“The weak numbers emphatically underscore the need of policy focus on growth,” said Shubhada Rao, chief economist at Yes Bank Ltd in Mumbai. “We are expecting the RBI to execute another rate cut of 25 basis points at its next meeting.”

Last quarter’s growth slump showed a contraction in manufacturing and subdued investments.