Advertisement

HindustanTimes Mon,22 Sep 2014

RBI to take note of lower inflation: governor

Reuters  Frankfurt, May 14, 2013
First Published: 23:14 IST(14/5/2013) | Last Updated: 23:16 IST(14/5/2013)

The Reserve Bank of India will take note of falling inflation when discussing potential interest rate cuts, governor Duvvuri Subbarao said on Tuesday, adding he was very happy about the falling inflation.

Advertisement

Asked about potential interest rate cuts in light of falling inflation, Subbarao said they would be taken into account in future central bankers "will take note of softening inflation."

India's headline wholesale inflation fell below 5% in April, dropping within the central bank's comfort zone for the first time in more than three years and fuelling market hopes for more monetary easing to revive flagging economic growth.

Subbarao said earlier he was "very happy" about the fall.

He also said that cutting public-sector budgets in India can be supportive of growth, if done smartly and by increasing efficiency.

"In India, we need austerity for growth, fiscal consolidation can support growth in India," Subbarao said.

He also said that he expected the country's economic growth to pick up speed in the second half of this year, and added that India has to control its current account deficit and bring it down to 2.5% from the current level of 5%.


Advertisement
more from Business

Maruti's hold on best selling car models in India continues

Country's largest car-maker Maruti Suzuki India continues its dominance on the Indian roads, with its four models, led by entry-level small car Alto, heading the top ten best sellers list in April-August period this fiscal.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved