New Delhi : Lauding RBI for doing a “brilliant job” with controlling inflation and stabilising the rupee, leading industrialist Anand Mahindra hoped the central bank will cut interest rate as the economy has stabilised.
“Now he (RBI Governor) has some breathing space, where the fuel price index would go down. So, in the next few months, if this situation continues, forex inflows are strong, IIP goes up, inflation is abetting, fuel prices are going down…This is the time now (for RBI to cut rate),” he told PTI. Wholesale Inflation dipped to a five month low of 5.19 per cent in July. At the same time, rupee has been trading at around 61 against a dollar from all-time low of 68.85 last August.
The RBI had in the past took the right decision by keeping the interest rate high to avoid slippages in rupee and prevent the inflation from going out of hand, Mahindra said. “RBI Governor Raghuram Rajan inherited an economy that was on the verge of being becoming a banana republic largely because the rupee was plunging and the fiscal deficit was climbing and inflation was going up,” he said.
