Unseasonal rains sabotaging crops and impacting food prices had led to the central bank’s woes which resulted in it maintaining its status quo, post lowering the rate twice this year, the report said.
Finance Minister Arun Jaitely’s expectations hinged on RBI Governor Raghuram Rajan for the interest rate cut, are no different from the general expectations regarding the second bi-monthly monetary policy review, says the FM during a PTI interview , as mentioned in an ET report.
His expectations for rate cut from RBI are on similar grounds with the common man, he added.
Unseasonal rains sabotaging crops and impacting food prices had led to the central bank’s woes which resulted in it maintaining its status quo, post lowering the rate twice this year, the report said.
June 2 this year would most likely witness rate cuts however any additional reduction would rely on the structural reforms which the government undertakes.
Monsoons could refrain from being as generous as their average rate however macro economic indicators like retail inflation, industry output and wholesale support industry and government’s decision to coax the RBI governor for cutting rates, stated the report.
Inflation is likely to abate affecting growth considerations which would determine the next round of rate cuts, believe experts, the report mentioned.
Due to loss of purchasing power in rural economy, retail inflation path would be tempered. Should inflation remained below than 5%, an additional rate cut of 0.25% could take place, says SBI as mentioned in the report.
His expectations for rate cut from RBI are on similar grounds with the common man, he added.
Unseasonal rains sabotaging crops and impacting food prices had led to the central bank’s woes which resulted in it maintaining its status quo, post lowering the rate twice this year, the report said.
June 2 this year would most likely witness rate cuts however any additional reduction would rely on the structural reforms which the government undertakes.
Monsoons could refrain from being as generous as their average rate however macro economic indicators like retail inflation, industry output and wholesale support industry and government’s decision to coax the RBI governor for cutting rates, stated the report.
Inflation is likely to abate affecting growth considerations which would determine the next round of rate cuts, believe experts, the report mentioned.
Due to loss of purchasing power in rural economy, retail inflation path would be tempered. Should inflation remained below than 5%, an additional rate cut of 0.25% could take place, says SBI as mentioned in the report.
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