Is there a room for rate cut? RBI faces calls for liquidity boost

Slower economic growth putting pressure on RBI to ease policy

India’s economic soft patch has put Asia’s most dovish central bank on notice, yet again.

Growth cooled to 5.8% in the first three months of the year, the slowest pace in several quarters, according to a government report on Friday. That took the expansion in the fiscal year to March 2019 to 6.8%, lower than the 6.9% median estimate in a Bloomberg survey.

Despite the central bank’s two interest-rate cuts this year, borrowing costs in the economy aren’t coming down fast enough. Liquidity has also dried up in recent months as demand for cash picked up ahead of India’s six-week