<div>Reserve Bank is likely to cut interest rate as the wholesale price-based inflation is expected to decline further to 4.3 per cent in August, Moody's Analytics said on Friday (11 September). </div><div> </div><div>"India's wholesale prices likely fell 4.3 per cent on year-on-year in August, a further decrease from last month's surprise 4.1 per cent decline. Energy and manufactured-good costs are expected to continue their decline, while food prices will likely fall steeply as a result of base effects," it said. </div><div> </div><div>At the same time, retail inflation also slipped to a record low of 3.78 per cent in July. </div><div> </div><div>It further said "the Reserve Bank of India paused its monetary easing cycle, but we expect there will be further cuts in 2015 as inflation continues to fall." </div><div> </div><div>RBI mostly tracks the consumer price inflation for its policy decisions and its bi-monthly monetary policy review is due on September 29. </div><div> </div><div>India Inc has been pitching for a rate cut by the RBI to spur growth and investment. </div><div> </div><div>In a recent meeting with Prime Minister Narendra Modi industry made a pitch for cut in interest rate by RBI citing record low inflation. Even the government is in favour of interest cut as inflation is low.</div><div> </div><div>Finance Minister Arun Jaitley had expressed hope that RBI will consider factors like low inflation and commodity prices. </div><div> </div><div>In a scenario where inflation is under control, the quantum of interest rate cut is "the prerogative of the RBI", the minister had said.</div>
