The Reserve Bank has taken the decision to cut the lending rate by 0.50 % which will boost the investment level high, as informed by Finance Minister Pranab Mukherjee today April 17, besides giving a guarantee that the government will take further effective steps to raise the growth and also mange the petrol rise.
Mukherjee told the reporters, “In the past months the growth which had lowered, should now make a progress. The declaration of monetary policy should be effective in the revival of investment and bestow in the business fortunes. We will be taking additional steps in the upcoming weeks to increase the growth stage.”
After along gap of 3 years, RBI in its annual monetary policy statement for 2012-13 cut interest rate by 0.50 %.
Between the period of March 2010 and October 2011, there has been a hike in policy rates 13 times by RBI to put a check on high inflation rate.
According to Mukherjee, “There has been a decrease of inflation rate for 4 months continuously, with a decline in December in inflation for manufactured products from 7.6% to 4.87% in March, and this has made easier the alteration in the monetary policy.”
He added, “The main concern is now the food and prime inflation signs. Therefore we focus to judge the situation and take up the necessary steps in order to cope with the short term supply limitation for those food items that lead to inflation. The government will be taking every possible step necessary to stable the price.”
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