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India pressed to cut interest rates as economy falters

31 July 2012 Last updated at 01:18 BST

India's central bank is widely expected to keep interest rates on hold, when it meets Tuesday, a day after admitting that it is worried about inflation.

The Reserve Bank of India, hinted in a report on Monday that it was unable to cut interest rates further, despite pressure to boost the country's economy, as growth slows.

India's economy grew 5.3% between January and March, its slowest annual quarterly expansion in nine years.

Shubhada Rao, the chief economist at Yes Bank in Mumbai, told Asia Business Report why she believes the central bank will not change its key lending rate.