Industries impose pressure on RBI
Posted on: 15/Nov/2014 2:28:52 PM
Unlike past five years, the inflation based Wholesale Price Index hit a low at 1.77 per cent during October 2014. This has imposed pressure on RBI from varied industries, peppering to slash the key policy rates.
However, according to sources, nevertheless the dip in inflation rate and poor growth, there is no sign of making any change in the interest rate during the December monetary policy review. The inflation rate during September 2014 was 2.38 per cent.
According to the views of the Finance Minister Arun Jaitley, he says this trend of low inflation rate may keep continuing as there is a huge decline in price of crude oil. He added that this dip will keep continuing as long as the crude oil rates keep hitting low points. He also pointed that it is important to eye on the rates of oil, and that we cannot be optimistic on this issue.
Not bearing with the words from the Finance minister, industry bodies have come forward to put pressure on the RBI to cut down on the interest rate that in turn will perk up the investments. This has in turn catalyzed the review process by RBI.
