 "Rate cut by Rajan to provide 'good fillip': Jaitley")
Finance Minister Arun Jaitley has again pushed for a cut in lending rates.
He said on Monday that if the Reserve Bank of India (RBI) brought these down in its policy review scheduled for December 2, it would provide a ‘good fillip’ to the economy.
“The finance minister said inflation, especially food inflation, had moderated in the past few months and global fuel prices had also come down. Therefore, if RBI, a highly professional organisation, in its wisdom decides to bring down the cost of capital, it will give a good fillip to the economy,” said a ministry statement on Jaitley’s speech at the Citi Investor Summit on Monday morning. The meet was closed to the media.
In fact, RBI Deputy Governor S S Mundra, while speaking at the India International Trade Fair here, later in the day, said while CPI inflation in October had come down on many factors, including a base effect and low commodity prices, it was not easy to predict whether it would moderate further.
Jaitley told the Citi summit he was expecting the insurance amendment Bill to be passed in the coming session of Parliament. He said he was in touch with the select committee of the legislature in this regard and would try to have it give the report on the Bill at the earliest.
Jaitley also said he was in touch with state governments regarding the proposed Goods and Services Tax (GST), and most of the contentious issues had been resolved. As already reported, he said states want tax authority on liquor and petroleum products. “Two states (also) want entry tax and octroi to be kept out of the purview of the GST." The minister said all these issues would be sorted soon.
Jaitley said the targets fixed for disinvestment in the current financial year were ambitious but he hoped to achieve these or reach near. He said road shows in this regard were being held in many parts of the world.
He also said he was in discussion with opposition parties for needed changes in the land acquisition Act, to avoid delay in implementation of infrastructure projects.
He said on Monday that if the Reserve Bank of India (RBI) brought these down in its policy review scheduled for December 2, it would provide a ‘good fillip’ to the economy.
“The finance minister said inflation, especially food inflation, had moderated in the past few months and global fuel prices had also come down. Therefore, if RBI, a highly professional organisation, in its wisdom decides to bring down the cost of capital, it will give a good fillip to the economy,” said a ministry statement on Jaitley’s speech at the Citi Investor Summit on Monday morning. The meet was closed to the media.
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RBI Governor Raghuram Rajan has kept interest rates unchanged since January. Despite October’s retail infaltion at a historic low of 5.52 per cent and wholesale inflation at a five-year low of 1.77 per cent, Rajan might not ease lending rates now. Analysts expect him to wait for at least a few more months.
In fact, RBI Deputy Governor S S Mundra, while speaking at the India International Trade Fair here, later in the day, said while CPI inflation in October had come down on many factors, including a base effect and low commodity prices, it was not easy to predict whether it would moderate further.
Jaitley told the Citi summit he was expecting the insurance amendment Bill to be passed in the coming session of Parliament. He said he was in touch with the select committee of the legislature in this regard and would try to have it give the report on the Bill at the earliest.
Jaitley also said he was in touch with state governments regarding the proposed Goods and Services Tax (GST), and most of the contentious issues had been resolved. As already reported, he said states want tax authority on liquor and petroleum products. “Two states (also) want entry tax and octroi to be kept out of the purview of the GST." The minister said all these issues would be sorted soon.
Jaitley said the targets fixed for disinvestment in the current financial year were ambitious but he hoped to achieve these or reach near. He said road shows in this regard were being held in many parts of the world.
He also said he was in discussion with opposition parties for needed changes in the land acquisition Act, to avoid delay in implementation of infrastructure projects.