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.

EDITORIAL OF THE DAY

  • But for market intervention, the govt has no business to be in business

    Selling equity in government owned companies has never been a priority for the Narendra Modi: the government has thus far not professed aggressive equ

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust:The mother of all battles

Gassed out after the interminable interplay of the Yadavs in ...

Rajgopal Nidamboor

Of life’s essentiality and synchrony

It is no big deal to think of psychology as ...

Anil Dharker

No women, no Cry

EDM, as you would know if you are young, (and ...