NEW DELHI: India’s Finance Minister Arun Jaitley favours a cut in interest rates to trigger demand in the construction sector, a newspaper report said yesterday, but the central bank has signal it will not ease policy until it is confident of lower inflation.
In May, Prime Minister Modi was elected on promises that his government would create jobs and rejuvenate the Indian economy, but experts were disappointed by Jaitley’s first budget and a lack of early progress on fixing structural economic problems.
“Currently, interest rates are a disincentive. Now that inflation seems to be stabilising somewhat, the time seems to have come to moderate the interest rates,” Jaitley said in an interview with the Times of India. Reuters
