RBI may cut rates early next year, says Rangarajan

Hyderabad, Dec 18: The Reserve Bank of India (RBI) may cut rates early next year, said C. Rangarajan, former chairman of the prime minister's Economic Advisory Council. He said the central bank may go for the rate cut as price situation is showing improvement. "The price situation is showing definite improvement. I expect probably changes will come in the early part of next year. It could happen anytime as indicated by the recent policy statement," he told reporters here Thursday on the sidelines of an event. The former RBI governor, however, cautioned that volatility in the currency markets should also be taken into consideration before taking any policy decision.