RBI should cut rates to boost growth: Sharma
January 23rd, 2012 - 6:11 pm ICT by IANSNew Delhi, Jan 23 (IANS) The Reserve Bank of India (RBI) should cut interest rates at its policy review Tuesday to boost industrial growth and investment as inflation had declined, Commerce and Industry Minister Anand Sharma said Monday.
“We have been of the considered view in the commerce and industry ministry that the rates for the industry and investment should be lower. We have taken up this with the finance minister who has been receptive and positive,” Sharma told reporters here.
He said the RBI should take measures to make credit cheaper as inflation was under control.
The RBI will conduct the third quarter review of the monetary policy Tuesday.
Asked whether it would be a right time to cut rates, Sharma said, “considering that the economy needs more infusion of funds, more infusion of investments, and with inflation under control, I would only hope that the cost of credit to the industry comes down.”
However, the minister said, it was up to the RBI to take a decision on the issue.
“It’s a domain of the Reserve Bank of India. Sure they will take a considered view,” Sharma said while talking to mediapersons on the sidelines of a Saarc Business Summit organised by the Federation of Indian Chambers of Commerce and Industry (Ficci) here.
The Reserve Bank of India last month kept policy rates unchanged after hiking the key rates 13 times since the beginning of 2010.
Most analysts feel the RBI would keep rates steady Tuesday as well.
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- Industry needs credit to boost growth: Anand Sharma - May 03, 2011
- Economy to grow at 7 percent, no rate cut before April: Ficci - Jan 23, 2012
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