Case for RBI to cut policy rates: P Chidambaram

There is a case for the Reserve Bank of India (RBI) to cut policy rates,and the central bank should take comfort from the government’s efforts to cut the fiscal deficit,Finance Minister P. Chidambaram told Bloomberg TV India on Monday.

The RBI is expected to cut policy rates on Tuesday,according to a Reuters poll,after the weakest economic growth in a decade,slowing inflation and a commitment by the government to contain its fiscal deficit.