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<h1>Ratings agency sees CPI easing to ~3.2%, hints MPC may cut rates as fiscal deficit target and borrowings rise</h1> A ratings-agency report forecasts softer CPI inflation (around 3.2% vs 4.6% prior) and says a benign inflation outlook could prompt the Monetary Policy Committee to cut policy rates to support growth. The report notes the government's target to narrow the central fiscal deficit to 4.4% of GDP, plans to borrow ?6.77 lakh crore in H2 (?8 lakh crore in H1) and projects gross market borrowings up about 5% to ?14.7 lakh crore. It also projects lower average crude prices (USD 62-67/bbl) and a current account deficit near 1% of GDP.