The risk India will suffer below-average monsoon rain for a third year, a once-in-a-century event, probably means the central bank has room for just one interest-rate cut before an extended pause. Thirty-five of 39 economists surveyed by Bloomberg see the Reserve Bank of India lowering the repurchase rate to 6.5 percent from 6.75 percent on Tuesday, one predicts no change while three forecast a reduction to 6.25 percent. The median estimate in a separate survey shows the benchmark will drop to 6.50 percent this quarter and to 6.25 percent in the October-December period and stay there till at least June 2017. Two years of back-to-back drought have meant India’s reservoirs are three-quarters of the past decade’s average. Water scarcity could hurt crops, worsen price pressures and dent growth in Asia’s third-biggest economy. RBI Governor Raghuram Rajan would also be wary of the recent recovery in oil prices that could […]