RBI may opt for CRR cut in monetary review on Tuesday: experts
down significantly by the Reserve Bank, if they do a little more that will be great. Repo cut will actually bring down rate systematically in the system. So, deposits will be cheaper therefore people will lend cheaper. Overall, there will be a downward bias which has been required," he said.
Inflation declined to 10-month low of 7.24 per cent in November from 7.45 per cent in the previous month, raising hopes that RBI may cut rates to spur growth.
At the same time, the economic growth in the first half of the fiscal fell to 5.4 per cent, as against 7.3 per cent in the year-ago period. The growth in 2011-12 had fallen to a nine-year low of 6.5 per cent.
Asked about the likely RBI's policy action, Chief Economic Adviser Raghuram Rajan said the role of the Finance Ministry or the government is to increase the real side growth. The RBI will look at the monetary side.
Industry leaders have been demanding a cut in interest rate for long to prop growth and investment.
As the inflation is at its 10-month low, it is time for RBI to take measures to ensure that the interest rates are reduced irrespective of tools it may choose to use, Assocham president Rajkumar N Dhoot said.
On concerns of sticky inflation, the RBI had left key policy rates unchanged in its last quarterly review of the monetary policy in October but hinted at easing monetary policy further in the January-March quarter.
"As inflation eases further, there will be an
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