Low inflation gives room for policy rate cut: RBI

Ahead of its annual monetary policy, the Reserve Bank said on Thursday cutting policy rate to promote investment depends upon moderation in inflation and fiscal consolidation. "We need to have low inflation, we need to have rising investment ratio, we need to have strong fiscal consolidation and this in turn provides space for monetary policy to actually support investment ..." Deputy Governor Subir Gokarn said at a summit here. RBI is scheduled to announce annual monetary policy for 2012-13 on April 17. There is widespread expectation that the central bank may cut policy rate later this month to prop up growth and investment.