WPI inflation stays negative for eighth month

The wholesale price index (WPI)-based inflation remained in the negative territory for the eighth consecutive month at (-) 2.4 per cent in June.

This may not open space for the Reserve Bank of India (RBI) to go in for another policy rate cut on August 4, say economy watchers.

The RBI has so far this year cut policy rates thrice this year to extent of 75 basis points.

The consumer price inflation for June had on Monday come in at higher than anticipated level of 5.4 per cent. The RBI is now guided by movements in consumer price inflation for deciding its monetary stance.