They argue rate cuts will encourage businesses spend more and boost economic expansion which has slowed to its weakest in a decade.

WSJ: India Inflation Picks Up

India's central bank cut its key lending rate by a quarter of a percentage point to help revive economic expansion, but it warned that higher inflation and a wide current-account deficit may leave little room for further easing.

WSJ: What's News

The Bank is forecasting a rapid economic expansion of nearly 3.5% this year, well above the trend growth rate of 2.5%.

ECONOMIST: Labour market

In economic data, the U.S. non-manufacturing sector saw a slower rate of expansion in November, according to data released Monday by the Institute for Supply Management, while U.S. factory orders fell a second straight month during October, according to government data.

WSJ: Stocks Off Highs After Report on EU Ratings

Figures released on May 24th showed that America's economic expansion in the first three months of this year was marginally weaker than previously thought: GDP grew at an annual rate of 5.6%, revised from the first estimate of 5.8% (though the final figure, which could also be revised, will not be available for some time yet).

ECONOMIST: Fasten your seatbelts | The