Business

RBI policy review: Rajan faces calls to pull the trigger

The Reserve Bank will unveil its first bi-monthly policy review for this fiscal tomorrow amid expectations of a 0.25-0.50 per cent cut in interest rates to boost industrial growth and economy.

Finance Minister Arun Jaitley earlier in the day pitched for policy easing, saying high rates could lead to a sluggish economy.

Bankers and experts too are expecting lower borrowing costs as the inflation trajectory is down and the government has pledged to stay on the fiscal consolidation path.

Keen to show that it means business, the government has pared the small savings interest rate by up to 1.3 per cent, providing cushion to the Reserve Bank for lowering the policy rate and for banks to pass on its benefits to consumers.

Bank of Maharashtra CMD Sushil Muhnot said: "There is possibility of RBI reducing rate by 0.25 per cent as inflation has eased." 

According to a senior official from a state-owned bank, although a 0.25 per cent rate cut has been factored in by the market, there is also a high possibility of RBI slashing it by 0.50 per cent.

Jaitley said: "The government has stuck to fiscal deficit commitments and inflation has been under control. I do hope that this movement will continue in order to make our economy more competitive with more competitive interest rates." 

Industry chambers on their part are pitching for 0.5 per cent reduction in the key interest rate.

Source PTI

5 benefits of investing in fixed deposits

Pune : For all risk-averse investors out there, seeking a safe avenue for investing their hard-earned money, fixed deposits rank right at the top of t...

Ola commences ridesharing operations in Adelaide

New Delhi: Taxi aggregator Ola on Thursday announced the start of its operations in Adelaide following successful launches in Perth, Sydney, Melbourne...

Max Life Insurance to distribute Rs. 1,084 crore as bonus to its participating policyholders

New Delhi : Max Life Insurance, one of the leading life insurance companies of India, announced bonus for its participating policyholders. During the ...

Ashish Saraf to lead Airbus India's helicopter division

New Delhi : Airbus on Tuesday announced the appointment of Ashish Saraf as the Head of its India faction's helicopter division.In his new role, he wil...