Reserve Bank of India may ease interest rates to boost economic growth
New Delhi : The Reserve bank of India may decrease interest rates further more to incentivise investment and in turn, promote economic growth.
"There is scope for monetary easing because of inflation projections," a senior finance ministry official said on Saturday.
The analysis by the government comes on the backdrop of low inflation that remains under 4 for some time.
The official added that the pickup in inflation, as seen for last month, has been taken into account in their analysis while suggesting a rate cut.
While announcing its policy in August this year, RBI had slashed rate by 0.25 per cent to 6 per cent in August, citing reduction in inflation risks.
On Wednesday, finance minister Arun Jaitley had said that the government will take “any additional moves as necessary” to support economic growth.