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India's businesses call on RBI to cut rates

  • Regular
  • Asian Market
  • 5 months ago
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Main business groups in India have called on to the central bank to decrease its interest rates by half of a percentage point and to cut its cash reserve ratio in order to boost the economy.

The sentiment has been voiced by Indian Finance Minister Arun Jaitley as he stated, “We can’t have a real rate of interest that is higher than anywhere else in the world.”

“The government in recent months have strongly felt that certain sectors of the economy needed credit and liquidly support.”

Following the sudden departure of former RBI (Reserve Bank of India) Urjit Patel, current Shaktikanta Das is currently reviewing the request as he meets industry captains regarding monetary policies on February 7.

President of the Federation of Indian Chambers of Commerce and Industry, Sandip Somay addressed the RBI governor, “The need of the hour is to have an accommodative monetary policy, focusing on growth.”

India’s economy is projected to grow 7.2% in the financial year to March, increasing relatively from the 2017-2018 figure of 6.7%.

 

Source: Smart Trend Team