Jaitley hopes rates will ease if inflation cools

Tags: Economy
Finance minister Arun Jaitley said on Friday he hoped interest rates would be reduced should inflation ease, days after data showed consumer prices easing to their lowest since figures were first published in January 2012.

"Interest rates have gone up. Hopefully, if inflation moderates, they will come down," Jaitley told parliament.

Jaitley did not give specifics on the level of inflation.

Data on Monday showed consumer prices led inflation eased to 7.31 percent in June, helped by a slowdown in food inflation and a favourable statistical base.

The Reserve Bank of India uses retail prices as its main inflation gauge while setting its monetary policy. It will next review rates on Aug. 5.

The central bank is not statutorily independent from the finance ministry, but its bureaucrats prize autonomy.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Winter rains that have destroyed rabi crops are bound to take their toll

    Farmers are distressed. Many of them are staring at bankruptcy and most remain unsure how they would feed themselves, their families and cattle.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Today's Columns

BK Chaturvedi

Size does not matter, efficiency does

On assumption of office, prime minister Modi had emphasised the ...

Zehra Naqvi

Don’t let society decide your life’s framework

Our lives are nothing but a series of relationships, and ...

Dharmendra Khandal

The gigantic tales of mother nature

In Namdapha tiger reserve, Arunachal Pradesh, our guide was looking ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture