RBI Could Have Cut Rate by Greater Margin: Trade Minister
Welcoming the Reserve Bank of India's move to cut interest rate, Commerce and Industry Minister Nirmala Sitharaman on Thursday said that the apex bank could have eased the key policy rate further.
Press Trust of India | Last Updated: January 15, 2015 23:10 (IST)
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Jaipur: Welcoming the Reserve Bank of India's move to cut interest rate, Commerce and Industry Minister Nirmala Sitharaman on Thursday said that the apex bank could have eased the key policy rate further.
She said the rate cut by the RBI shows that economy is now showing a sustained level of revival and inflation is also being controlled and was not fluctuating.
"Economy is very clearly showing signs of revival. Although I still call it very cautionary, they (RBI) could have been a bit more eased out. I don't know, they are the best judge," she told reporters here.
She was addressing media after the inauguration function of CII's Partnership Summit.
The RBI, after a gap of 20 months, on Thursday reduced the key policy rate by 0.25 per cent to 7.75 per cent.
Ms Sitharaman said that the rate cut has definitely given a positive message, adding, "I appeal to the industries to take it as a very positive cue that the revival of Indian economy now is on a sustained trajectory and it shall move forward."
However, the minister said the Indian industry is still not getting credit at affordable rates.
"For those who have access to international financial markets, they still have the advantage of getting credit at a lower rate than those in India who do not have and who rely on Indian financial institutions."
"So the level playing field is not yet achieved in terms of credit access, affordable credit access. But I would still say this is a very positive sign and I welcome it however small the drop is," she added.
Railway Minister Suresh Prabhu said that RBI has reduced policy rates when it has seen increased interest of investors in the Indian economy.
"The stock market is on the rise, Indian rupee is becoming stronger and I think this is...in next few years' time you will see a significant improvement in India's economy as a whole," the minister said.
Story first published on: January 15, 2015 22:32 (IST)