Anup Roy

Anup Roy 1 min read (Bloomberg) -- India's inflation eased last month, but a plunging currency may give the central bank reason to delay cutting interest rates just yet.

India’s inflation eased last month, but a plunging currency may give the central bank reason to delay cutting interest rates just yet.

(Bloomberg) — India's inflation eased last month, but a plunging currency may give the central bank reason to delay cutting interest rates just yet.

India’s new central bank governor has shown a willingness to allow the rupee to move more freely in tandem with peers in the region while still intervening in the foreign-exchange market to curb excessive moves, according to people familiar with the regulator’s thinking.

India's new central bank governor, Sanjay Malhotra, is willing to let the rupee move more freely while intervening to curb volatility. Malhotra backs the need for a weaker rupee to correct overvaluation, despite the rising import bill. Exporters and recent capital outflows influenced this policy shift.

India’s government began interviewing candidates for a new central bank deputy governor this week, less than a month after appointing a new head to the Reserve Bank of India and weeks before a crucial interest rate decision.

The government has begun interviewing candidates for the Reserve Bank of India's new deputy governor just weeks before an important interest rate decision. The candidates include notable economists such as Poonam Gupta and Chetan Ghate. The final decision will be made by Prime Minister Narendra Modi and Home Minister Amit Shah. The new deputy governor will replace Michael Patra.

India’s central bank may take stronger measures, including cutting cash reserve requirement for lenders, to ease tight liquidity conditions, according to people familiar with the developments.

India’s economic growth is poised to rebound as domestic demand strengthens, the Reserve Bank of India said in its monthly bulletin on Friday.

India’s falling currency may still have a silver lining for its federal government. Analysts are penciling in another year of windfall dividend by the Reserve Bank of India courtesy the profits earned on selling massive amounts of dollars in its attempt to support the rupee.