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Finance minister favours cut in interest rates

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Reuters NEW DELHI
Last Updated : May 22 2015 | 1:28 PM IST

NEW DELHI (Reuters) - The time is right for the Reserve Bank of India (RBI) to cut interest rate due to falling inflation, the finance minister told reporters on Friday.

"It is," said Arun Jaitley, when asked whether the time is right for the RBI to effect an interest rate cut.

The RBI will review its monetary policy on June 2 and is widely expected by economists to lower its key policy rate by 25 basis points on the back of the sharp fall in both retail and wholesale prices.

(Reporting by Manoj Kumar; Editing by Malini Menon)

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First Published: May 22 2015 | 1:13 PM IST

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