Sharma vouches for interest rates cut by RBI

New Delhi: Ahead of the monetary policy review by RBI, Commerce and Industry Minister Anand Sharma today made out a strong case for lowering of interest rates in the wake of industrial slowdown.

“We are of considerate view that interest rates for investment for industry should be lowered. We have taken up with the finance minister who is receptive and positive particularly for small and medium enterprises,” Sharma told reporters on the sidelines of Saarc Business Summit organised by Ficci in New Delhi.

[caption id=“attachment_191444” align=“alignleft” width=“380” caption=“Union Commerce and Industry Minister, Anand Sharma. Image courtesy PIB”]  [/caption]

He expressed the hope that the central bank would “take a considerate view” as the economy needs infusion of funds and more investment keeping inflation under control.

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The RBI is scheduled to review its short-term lending rates on Tuesday, amid apprehensions that it may not go in for interest rate cut even as the pause on the hikes may continue.

The central bank had hiked interest rates by 375 basis points between March 2010 and October 2011 to deal with the persistently high inflation, including rising prices of food items.

However, general inflation fell to a two-year low of 7.47 percent in December 2011. Food inflation stood at (-)0.42 percent as of 7 January.

The country’s industrial production grew by 5.9 percent in November 2011 as against 6.4 percent in the same period a year ago.

But it showed a bounce-back in November as compared to October 2011 when the factory output decelerated 4.74 percent.

PTI