Press Esc to close
Saturday 20 September 2014
News updated at 3:46 AM IST
Weather
Max: 27.8°C
Min : 20.1°C
In Bangalore
Sunny day

Rate cut measured response to current eco situation:Rangarajan

New Delhi, May 3, 2013, (PTI):
Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan. File PTI Photo

 The Reserve Bank's decision to cut the key interest rate by 0.25 per cent to 7.25 per cent is a measured response to the current economic situation, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan said today.

"It is a measured response to the current economic situation. WPI inflation has shown signs of decline and the retail inflation still remains at a high level, CAD is also high," Rangarajan said.

The overall inflation in March fell to 5.96 per cent.
He added that further policy rate cut by RBI will depend on how inflation behaves.

"At this particular point, one has to be somehow cautious because there are many adverse factors operating in the system. Going ahead what RBI will do depends to a large extent on how inflation behaves," Rangarajan said.

RBI Governor D Subbarao in the annual monetary policy review today cut the key interest rate by just 0.25 per cent to 7.25 per cent and kept the liquidity enhancing cash reserve requirement unchanged, disappointing the industry and stock market.


The RBI said there would be modest improvement in the country's economic growth to 5.7 per cent in the current fiscal, as against the decade's low of 5 per cent in 2012-13.
However, RBI's growth projection for the current fiscal is lower than Rangarajan headed panel's (PMEAC) growth projection of 6.4 per cent for 2013-14.

The central bank said it expects inflation to hover broadly around the 5.5 per cent mark in the current fiscal and will deploy "all instruments at command" to bring it down to 5 per cent by March next year.

Go to Top

Photo Gallery
Bollywood actor Farhan Akhtar at the launch of Coca Cola Zero in New Delhi ...

Bollywood actor Farhan Akhtar at the launch of Coca Cola Zero in New Delhi ...

Sadananda Gowda releasing the logo for a special cleanliness campaign of SCR at Rail Nlayam ...

Sadananda Gowda releasing the logo for a special cleanliness campaign of SCR at Rail Nlayam ...

Manmohan Singh greets Chinese President Xi Jinping as Sonia Gandhi looks on ...

Manmohan Singh greets Chinese President Xi Jinping as Sonia Gandhi looks on ...

Indian flagbearer Sardar Singh carries the national flag to lead the contingent into Incheon ...

Indian flagbearer Sardar Singh carries the national flag to lead the contingent into Incheon ...

Asian Games torch arrive at main stadium for opening ceremony of the 17th Asian Games ...

Asian Games torch arrive at main stadium for opening ceremony of the 17th Asian Games ...

Artists perform during the opening ceremony for the 17th Asian Games in Incheon, South Korea ...

Artists perform during the opening ceremony for the 17th Asian Games in Incheon, South Korea ...

Omar Abdullah inaugurates a reconstructed bridge which was washed away by floods at Gundoora ...

Omar Abdullah inaugurates a reconstructed bridge which was washed away by floods at Gundoora ...

Students take part in a rally aganist the alleged molestation of Jadavpur University female ...

Students take part in a rally aganist the alleged molestation of Jadavpur University female ...

Kashmiri Sikh people preparing food for the flood victims at a relief camp ...

Kashmiri Sikh people preparing food for the flood victims at a relief camp ...

A ballot box is emptied as workers prepare to count ballots at a counting centre in Aberdeen...

A ballot box is emptied as workers prepare to count ballots at a counting centre in Aberdeen...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523