Finance minister Arun Jaitley favours interest rate cut - Hindustan Times
close_game
close_game

Finance minister Arun Jaitley favours interest rate cut

Reuters | By, New Delhi
Oct 25, 2014 12:48 PM IST

Finance minister Arun Jaitley favours a cut in interest rates to trigger demand in the construction sector, a newspaper report said on Saturday, but the RBI has signalled it will not ease policy until it is confident of lower inflation.

Finance minister Arun Jaitley favours a cut in interest rates to trigger demand in the construction sector, a newspaper report said on Saturday, but the Reserve Bank of India (RBI) has signalled it will not ease policy until it is confident of lower inflation.

HT Image
HT Image

In May, Prime Minister Modi was elected on promises that his government would create jobs and rejuvenate the economy, but experts were disappointed by Jaitley's first budget and a lack of early progress on fixing structural economic problems.

Hindustan Times - your fastest source for breaking news! Read now.

"Currently, interest rates are a disincentive. Now that inflation seems to be stabilising somewhat, the time seems to have come to moderate the interest rates," Jaitley said in an interview with the Times of India.

Last month, the RBI sent a strong signal that it would refrain from cutting interest rates until the central bank was confident that consumer inflation can be cut to a target of 6 percent by January 2016.

India's retail inflation eased for a second straight month in September, but the risks of price shocks from weak monsoon rains and oil are expected to prevent the central bank from cutting interest rates soon.

Consumer prices rose a slower-than-expected 6.46 percent from a year earlier, the lowest since figures were first published in January 2012.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Tuesday, March 05, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On