‘RBI should reduce rates to accelerate growth in the economy’- RBI
New Delhi| Commerce Minister Piyush Goyal has put forward some demands before the Reserve Bank of India (RBI) regarding the rising inflation in the country. In which he said that to accelerate development, the Reserve Bank of India i.e. RBI should cut interest rates. He said that considering food inflation to opt for rate cuts is a wrong principle. Due to which inflation may reduce in December.
Speaking at an event, Goyal said, the rise in food prices has nothing to do with the management of retail inflation. Now is the time for policy makers and the Monetary Policy Committee to decide together whether food prices should be included in calculating retail inflation or not. He said that this should be discussed seriously. The economy needs momentum.
State Bank of India i.e. SBI has increased the interest rates of selected term loans by 0.05 percent. The new rates will be applicable from Friday. The interest rate for one-year loans will now be 9 per cent, the bank said. The bank has also made loans with tenure of three and six months expensive. Loans have become expensive twice in recent times. The reason for this is that more interest has to be paid to raise deposits.
