Rate cut likely if inflation easing continues, says RBI Deputy SS Mundra

Reserve Bank of India (RBI) Deputy Governor SS Mundra said on Wednesday the RBI would have room to cut interest rates if factors leading to lower inflation continue.

The comments come ahead of consumer inflation data due on Friday. The central bank held interest rates steady in its bi-monthly monetary policy review on December 2, but said it could ease key policy rates by early 2015.

Regarding niche banks, Mundra said RBI would grant licences to small and payment banks by March or April after releasing the final guidelines for applications in November.

(Reuters)