Jaitley hopes that RBI will consider decline in retail inflation while deciding on interest rates
Advertisement
Advertisement
Finance Minister Arun Jaitley hopes that the Reserve Bank (RBI) will keep in mind the decline in retail inflation while deciding on interest rates at its policy review meeting on October 4."I expect when the policy review takes place next month then RBI, and hopefully if MPC is constituted by then, they will collectively keep all these factors in mind," he told the media when asked if declining inflation leaves room for rate cut.
In its monetary policy review last month, RBI maintained status quo on key rates citing upside risks to 5 % inflation target for March 2017. Retail inflation eased to a five-month low of 5.05 % in August.
The cooling of retail inflation and 2.4% contraction of factory output in July has revived hopes for a rate cut by RBI in its next policy meet on October 4 to boost growth.
Moving towards the new regime, the government had in July notified 4 % inflation target for the next five years, based on which the monetary policy committee (MPC) would take its decisions going forward, reports the agency.
Advertisement
It also provides for a margin of plus or minus 2 per cent in this target, thus fixing the upper tolerance level at 6 % till 2021. MPC will set interest rates by majority, with a casting vote for the central bank governor in the event of a tie. Out of six members of MPC, three will be from RBI - the Governor, who will be the ex-officio Chairperson, a deputy governor and an executive director.
The other three members will be appointed by the central government on the recommendations of a search-cum-selection committee, headed by the Cabinet Secretary. Government is yet to name its nominees on MPC.
Advertisement
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Catan adds climate change to the latest edition of the world-famous board game
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- Tired of blatant misinformation in the media? This video game can help you and your family fight fake news!
- JNK India IPO allotment – How to check allotment, GMP, listing date and more
- Indian Army unveils selfie point at Hombotingla Pass ahead of 25th anniversary of Kargil Vijay Diwas