Rangarajan sees inflation below 7%, backs rate cuts

With improvement in food price situation, Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan favoured rate cuts by the Reserve Bank and hoped headline inflation, too, will fall below the projected 7% by March- end.

With improvement in food price situation, Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan favoured rate cuts by the Reserve Bank and hoped headline inflation, too, will fall below the projected 7% by March- end.

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Rangarajan said that the economic growth forecast for the current fiscal would be around 7%. "I expect headline inflation could come down even below 7%by March-end," he told reporters on the sidelines of a function here.