India has room for further rate adjustments: RBI Chief

Reserve Bank of India has room to adjust interest rates further to boost the economy as inflation eases, RBI Governor Duvvuri Subbarao was quoted as saying. The economy will have a “more difficult year” in the 12 months ending March 2010, compared with expected growth of 7% in the current period, Subbarao added. The central bank left borrowing costs unchanged at its Jan. 27 meeting after lowering them to a record in early January to protect the economy from a global slump. “Even if exports are a relatively small percentage of GDP, recovery in India will in a large measure be linked to a recovery around the world,” Subbarao said.