Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  RBI may ease rates further, says chief economic advisor Arvind Subramanian
BackBack

RBI may ease rates further, says chief economic advisor Arvind Subramanian

RBI's own statement says that this is not just a change in rate, but a shift in its monetary policy stance, said Subramanian

Arvind Subramanian also said the government is committed to making sure that the taxation is not an extra burden for foreign investments of all kinds. Photo: PTIPremium
Arvind Subramanian also said the government is committed to making sure that the taxation is not an extra burden for foreign investments of all kinds. Photo: PTI

Davos: Lauding Reserve Bank of India’s (RBI) role in helping bring down inflation, chief economic advisor Arvind Subramanian said that RBI may further ease the interest rates as improvement on price front has opened the space for monetary easing. “The way I view is that RBI has a mandate to bring down inflation and keep it low and given the inflation has been coming down, that opened up the space for monetary policy easing and RBI has begun that," said Subramanian, who was in Davos to attend the World Economic Forum (WEF) annual meeting.

“The RBI’s own statement says that this is not just a change in rate, but a shift in its monetary policy stance provided inflation remains low and there could be more easing," Subramanian told PTI in an interview at the WEF summit that ended this weekend. A number of business leaders and bankers, including ICICI Bank’s Chanda Kochhar and Kotak Group’s Uday Kotak, also said at the WEF that the RBI may look at further easing of rates as inflation appears to be under control.

Subramanian also said the government is committed to making sure that the taxation is not an extra burden for foreign investments of all kinds. On ease of doing business, he said, “There are also issues like land laws, labour laws and reforms have been happening on those fronts. “We will have to wait for the World Bank to measure how these efforts have helped in terms of ranking. Besides, the real measure will be seen in terms of actual investments that would flow in."

On 15 January, the RBI had cut the policy rate by 25bps a few weeks ahead of its regular monetary policy meeting, which is scheduled to be held on 3 February. RBI governor Raghuram Rajan lowered the benchmark repurchase rate to 7.75% from 8%, the first reduction since May 2013. The RBI rate cut follows decline in inflation as well as the commitment of the government to stick to the fiscal deficit target of 4.1% of the gross domestic product (GDP) in the current financial year. PTI

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 26 Jan 2015, 02:16 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App