PM's adviser wants RBI to cut rates

Suresh Tendulkar, an economic adviser to the Indian prime minister, has said that the Reserve Bank of India should cut rates in the coming week.

"My own preference would be to see some rate cuts there in next week's policy," Tendulkar told Bloomberg News on Friday.

The central bank has already cut its benchmark repo rate by 350 basis points to 5.5% since the summer on the back of a raft of poor data on exports. Inflation has also declined from a high of 12.91% in August to 5.6%.

Analysts are