Low interest rates will bring relief on EMIs and reduce borrowing costs
Picture used for representational purpose. (Photo: DC/File)
New Delhi: Finance secretary Arvind Mayaram on Thursday voiced the hope that the Reserve Bank will soon cut interest rates as inflation is coming down, bringing relief on EMIs and reducing borrowing costs for industry.
A bullish Mr Mayaram said India’s GDP will speed up to 5.8 per cent in the current fiscal, against 4.7 per cent in 2013-14, as “there are green shoots of recovery in the economy”.
India’s economy, in its worst performance in the past 25 years, grew at sub-five per cent in the last two fiscals. The finance secretary said diesel will soon be completely deregulated if international prices stay at current levels. He justified import restrictions on gold, saying it was “working fine”.
This might indicate there may be no immediate review of these restrictions, especially the rule mandating export of a fifth of all gold imports. “We see inflation (will) come down further and hope the RBI will not hold interest rates high any longer than necessary,” he said at an interaction organised by Assocham. “I hope we will reach that threshold soon enough.”
( Source : dc )
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