RBI to look at positive factors: FM

Finance minister Arun Jaitley has said that theReserve Bank of India (RBI) will take note of the fact that inflation is broadly under control, oil and commodity prices are low and prospects of a better-than-expected agricultural production, when it reviews monetary policy.

“So in such a situation how much is the rate cut is a prerogative of the RBI, and I do see the central bank, as a professional organization, will take note of all these factors the next time,” Jaitley told ET NOW.

RBI governor Raghuram Rajan has said that the central bank is not yet done with rate cuts. The statement has triggered hopes of a decline in interest rates when it reviews monetary policy next month. Asked whether RBI has been a little stubborn on the monetary policy, Jaitley said: “People can have different views, but when an institution like RBI is empowered, we must learn to trust their judgment.”

Courtesy: TOI, ET Now, Economics Times