Jaitley nudges RBI to cut rate to boost growth

Tags: Economy
Nudging the RBI to cut interest rates to boost growth, finance minister Arun Jaitley today said he had already made his mind clear and hoped the central bank will take decision after taking into account various factors.

The Reserve Bank of India (RBI) had maintained status-quo on interest rate in its two credit policies announced after the formation of the new government in May.

"I, on the same evening (June 3 and August 5) already issued a clear statement and I think that's very clear. This an issue that the RBI decides and I am sure they factor in various circumstances," Jaitley told reporters after addressing the Central Board of the Reserve Bank here.

After the August 5 RBI's monetary policy, Jaitley had said inflation was moderating and going forward "the RBI should examine the liquidity situation, inflation and growth in setting policy rates".

On June credit policy, he had said the government was "concerned with restarting" the investment cycle and moving towards higher growth and job creation.

RBI Governor Raghuram Rajan, who was present at the press meet, said "as of now, we think the policy (to contain retail inflation) is on target. We (RBI's policy measures) are contingent on the data coming in".

The policy regime, Jaitley said in his address to RBI board, was being geared to attain higher growth, lower inflation and sustainable external balance in the backdrop of sub-five per cent growth in last two ficals.

The RBI Board a statement said reviewed the current economic situation, global and domestic challenges and policy responses.

EDITORIAL OF THE DAY

  • Census shows urgent steps are needed to dispel rural despair

    The much delayed Socio-Economic and Caste Census, 2011, has finally seen the light of day, and going by its conclusions, it couldn’t have come a day

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

Urs Schoettli

Economic integration in east Asia

As trade agreements within a global framework have become increasingly ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Gautam Gupta

The ‘fake’ issue needs to be taken seriously

E-commerce players are witnessing unbelievable growth globally. Competition is increasing ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture