India's economic growth needs more affordable interest rates, minister says
Published On : 2024-11-18T21:17:43+0530 [ IST ] |
Author : Mayur_Tembhare
Reading Time : 1 mins
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India's economic growth requires "far more affordable" bank interest rates he said.
At a time when we want industries to ramp up and build capacities, bank interest rates will have to be far more affordable he said.
Last week the nation's trade minister said the RBI should cut interest rates to boost economic growth and look through food prices while deciding on monetary policy.
The comments came after a surge in retail inflation largely driven by a jump in vegetable prices dashed hopes of an interest rate cut by the RBI in December.
Inflation is actually very volatile because of the supply demand constraints Sitharaman said while refusing to weigh in on whether perishable items like food should be considered in the nation's inflation targeting framework and while deciding on monetary policy.
India's top economic advisor said earlier this year that India's monetary policy framework should consider targeting inflation that excludes food, the prices of which are more influenced by supply than demand.
Persistently high food inflation has also squeezed middle class budgets, slowing urban spending and threatening the country's brisk economic growth.
Sitharaman said there was no cause for undue concern and the government was committed to measures needed to ensure the Indian economy remains on course.
Source : Reporters From Sunrise Chronicles
Tags : Mumbai , December , indiapersistently high food inflation , Persistently , indian , Reserve Bank , Last , India , ministerbrisk economic growth , saidinflation targeting framework ,
Summary :
India's economic growth requires "far more affordable" bank interest rates he said.
At a time when we want industries to ramp up and build capacities, bank interest rates will have to be far
