Finance ministry wants RBI to cut rates: Report

The Reserve Bank of India (RBI) should cut policy rates to give a push

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to sectors which are interest rate sensitive, a business daily quoted a finance ministry official as saying on Monday.

The finance ministry wants the Reserve Bank of India to switch its policy stance with growth concerns occupying centre stage and inflation showing signs of moderating, the report said.

Monetary tightening had hurt growth and the central bank should have paused earlier than December 2011, the report quoted the unnamed official as saying.

The RBI will review its policy on Tuesday. None of the 22 economists polled by Reuters last week expect it to cut rates.

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