New Delhi : With inflation likely to moderate following a good monsoon, Finance Minister Arun Jaitley on Tuesday said it is “logical” to hope for a rate cut by RBI though the actual decision will have to be taken by the central bank.
Buoyed by the monsoon progress, the minister exuded confidence that India can achieve a 9-10 per cent growth rate with a supportive global economic environment. “Once the indications are that in coming months these prices are going to come down, in some cases it might come down significantly. And therefore, to hope for a rate cut by any minister or any other person, I think, would be logical,” Jaitley said at a CNBC TV18 awards function.
On whether the interest rate in the next monetary policy review due on October 4 will be decided by the Monetary Policy Committee (MPC), the minister said, “That will depend on whether we are able to finalise the nominees on MPC. Our endeavour would be to do that.” Under the proposed framework, interest rate will be set by a six-member MPC to be headed by RBI Governor. Jaitley said inflation is likely to come down because prices of food items like pulses and vegetables, which pushed up retail inflation above 6 per cent in July, are expected to ease.
