All eyes on governor Rajan, falling inflation could be silver lining Reserve Bank of India (RBI) governor Raghuram Rajan is widely expected to cut interest rates on Tuesday, a move thatat will bring down EMIs for home loan borrowers and help companies raise cheaper funds to aid expansion plans. Inflation rates in India are currently at historic lows. While wholesale price index (WPI) –based inflation fell 4.95% in August, compared to a 4.05% decline in the previous month ,h retail inflation rose 3.66%, slower than the 3.69% increase in July. The plunge in inflation rates has triggered hopes that Rajan would likely cut interest rates inn the monetary policy review onn September 29. The government has also made it more than obvious that it wants the RBI to cut rates, given the wider elbow room thee central bank enjoys from the cur-rrently “deflationary” trends inn the economy. Rajan has cut the repo rate— the rate at which banks borrow from the RBI — by 0.75 percent-tage points