Reserve Bank of India will cut interest rates to boost growth
Posted on: 26/Mar/2014 12:01:22 PM
Taking into account declining inflation, Anand Sharma mentioned that he is hopeful of rate cut by RBI.
The RBI’s next monetary policy statement is scheduled on April 1. The central bank increased the key interest rate to 8 percent from 7.75 percent at its previous monetary policy review on January 28.
The annual rate of inflation, based on the monthly wholesale price index, stood at 4.68 percent in February, slipping below 5 percent for the first time in nine months as onion and potato prices eased.
Retail inflation was at a 25-month low of 8.1 percent in February.
The country’s economic growth slipped to a decade-low of 4.5 percent in 2012-13, and is estimated at 4.9 percent in the current financial year. This is low compared with the past when the Indian economy used to grow by 9 percent or more.
