Mumbai, November 19, 2024.
Finance Minister Nirmala Sitharaman on Monday batted for “affordable bank interest rates” to support industries to ramp up and build capacities.
Speaking at the 11th SBI Banking & Economics Conclave, Sitharaman said that despite moderation in certain domestic economic indicators, there was no cause for concern.
“…when you look at India’s growth requirements, and you can have so many different voices coming out and saying the cost of borrowing is really very stressful, and at a time when we want industries to ramp up and build capacities, bank interest rates will have to be far more affordable,” Sitharaman said when asked if she expects a reduction in interest rates soon or if there could be a delay in the cut given current inflation print.
In October, the Consumer Price Index (CPI) accelerated to a 14-month high of 6.21 per cent, compared to 5.5 per cent in September. The RBI has been focussing on keeping retail inflation to 4 per cent on a durable basis.
When asked about her concerns on inflation, Sitharaman said there were top three perishable goods that were causing stress on the inflation numbers. The other core items are in the three to four per cent range and are manageable.
She said the country periodically and cyclically suffers from an adequate supply of perishable commodities, and the government is making a lot of efforts towards scientific and more rigorous facilities for such commodities.
“Till you get on top of that issue, you will periodically have this problem of (rise in) onion, tomatoes and potatoes (prices) causing immense stress in a cyclical fashion,” she said.
