IFFCO MD demands interest rate cut

As the demand for a cut in the interest rate is mounting, IFFCO Managing Director Dr U S Awasthi said  on Wednesday that it is high time RBI should take note of the ground situations and effect a cut to induce the pace of economy.

Dr. U S Awasthi tweeted : #RBI reverse repo auction is at 7.99% the time has come to reduce interest rate to kick start economy#”.

There was also demand for interest rate cut in the World Economic Forum organized by the India Economic Summit in Delhi in which the Union Finance minister Arun Jaitley and several notable personalities from industries participated.

Industry leaders backed Finance Minister Arun Jaitley’s view that a rate cut would benefit the economy, which hasn’t yet shown definitive signs of turning around after a prolonged slump.

RBI Governor Raghuram Rajan will find it difficult to ignore this any further, industrialists felt.

There is a slight recovery of economy and somewhat positive outlook for inflation. They are pinning hopes on the next monetary policy review scheduled for December 2.

There is over-all improvement in the scenario. Inflation in terms WPI is as low as 2.38%, retail inflation dropped to 6.46%. RBI Governor wants the complete victory over inflation before he cuts the interest rate which is not a practical point of view, felt many at the Summit.