New Delhi : State Bank of India has pitched for further rate cut by the Reserve Bank to ‘pump up domestic demand’ as inflation is low. “With ebbing inflationary pressures there may be further scope for monetary stimulus to pump up domestic demand,” SBI Chairperson Arundhati Bhattacharya said.
RBI, in June 2 monetary policy review, cut the repo rate (short-term lending rate) from 7.5 per cent to 7.25, but left all other policy tools like cash reserve requirement unchanged at 4 per cent and Statutory Liquidity Ratio at 21.5 per cent. It had left the key rate unchanged in the April policy. India is poised to recover moderately with industrial production gaining momentum, Bhattacharya said in a message to shareholders. “Interestingly, the risk of deficit monsoon seems to be dissipating with more than adequate rainfall in June 2015,” she said.
“Looking ahead, boost to exports in the backdrop of global economic recovery and improvement in domestic investment climate, backed by various initiatives of the government, supports favourable growth outlook,” she added.
