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Govtwants RBI rate cut before March

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Govtwants RBI rate cut before March 
Impatient for faster economic growth, government is lobbying forareduction in official interest rates in coming months, as it expects inflation to stay close toa 4 per cent target, finance ministry officials said.
At its last meeting in October, the Monetary Policy Committee (MPC) left the repo rate at 6.0 per cent, near as even year low, and a Reuters poll found that economists expected the rate to stay there through to the second quarter of next year.
The finance ministry, according to officials, wantsarate cut sooner than that, puttingafocus on the MPC meeting on December 56, or when it next convenes in February.
“We expect the RBI to cut policy rates, if not in December then in its next policy review,” one ministry official said on condition of anonymity.After that, he said, higher oil prices could fuel inflation, making it more difficult to cut rates
The Business Standard, New Delhi, 29th November 2017

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