India inflation may moderate to below 7pc by March

NEW DELHI: India's headline inflation may moderate to 7 percent or little lower by March, R. Gopalan, secretary, economic affairs in the ministry of finance said on Tuesday.

He said that the cut in cash reserve ratio was a "good step" and the central bank recognises the need to boost growth.

Earlier Tuesday, the Reserve Bank of India cut the cash reserve ratio for banks by 50 basis points to 5.50 pct.

It left interest rates unchanged and said the growth outlook and business climate have weakened, but warned of upward risks to inflation.