With the cost of borrowing affecting the manufacturing sector, Finance Minister P Chidambaram on Friday was understood to have suggested to bankers to have a re-look at their interest rates in order to stimulate growth.
Keeping the overall growth momentum in the economy, Mr Chidambaram suggested to lower the overall lending rates at a meeting with Chief Executive Officers of public sector banks and representatives of automobiles, auto components and paper industry.
“The finance minister has taken up the issue of high interest rates affecting various sectors of the economy,” Maruti Suzuki India Managing Director Jagdish Khattar told reporters. Of late, various sectors of industry have been articulating the need for reduction in the lending rates in the wake of fall in overall inflation rate.
A vast majority of the Chief Executive Officers of various companies feel that the stage is set for Reserve Bank of India to relax the monetary policy in the wake of the inflation touching five year low of 3.23 per cent.
