New Delhi : Conditions are favourable for further interest rate cut by the Reserve Bank as commodity prices are low and prospects of Kharif crop are good, Finance Minister Arun Jaitley said.
“I think there is a lot of positive hope that I have. There is room for optimism,” he said when asked whether there is elbow room for cut in interest rate by the Reserve Bank.
Global crude oil prices from the point of view of India are “as good as they can be. Commodity prices world over are generally low. Rain God has been kinder to us this year…”, he said.
In an interview to CNBC TV18, Jaitley said things are “favourable” for easing of monetary policy, adding that even though there is slight inadequacy in rainfall, the geographical spread and the time schedule are such that “we are expecting a very good crop”.
In third bi-monthly monetary policy review this fiscal, RBI maintained status quo on key interest rate, but said it could cut them ahead of the next policy on September 29 depending upon macro-economic data. In 2015, RBI has cut interest rate in three tranches by a total of 0.75 per cent.
On constitution amendment bill to roll out GST, which is stuck in the Rajya Sabha due to political logjam, Jaitley he hoped “better sense” would prevail and opposition would allow the government to go ahead with the indirect tax reform.
When asked if the government was looking at new deadline for roll out of GST, Jaitley said he was not going to give up hope. The government plans to roll out GST from April 1, 2016. The constitution amendment has been passed by Lok Sabha.
