Monday 23 January 2012

Finance Ministry wants RBI to cut rates: report


REUTERS - The Reserve Bank of India (RBI) should cut policy rates to give a push to sectors which are interest rate sensitive, the Business Standard newspaper quoted a Finance Ministry official as saying on Monday.

The Finance Ministry wants the Reserve Bank of India to switch its policy stance with growth concerns occupying centre stage and inflation showing signs of moderating, the report said.

Monetary tightening had hurt growth and the central bank should have paused earlier than December 2011, the report quoted the unnamed official as saying.

The RBI will review its policy on Tuesday. None of the 22 economists polled by Reuters last week expect it to cut rates.

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