Appreciating RBI's efforts in lowering inflation, Chief Economic Advisor Arvind Subramanian underscored that the central bank may further ease the interest rates as improvement on price front has provided room for monetary easing.
Back on January 15, the RBI had cut the policy rate by 25 bps a few weeks ahead of its regular monetary policy meeting, which is scheduled to be held on February 3. The Chief Economic Advisor further reiterated RBI’s statement in fifth bi-monthly monetary policy. RBI, while effecting a rate cut outside out-side the policy review cycle, highlighted this was just not a rate cut, but a shift in its monetary policy stance, which could further ease provided inflation remains low.
Subramanian at the World Economic Forum (WEF) Annual Meeting also underscored that the government was committed to making sure that the taxation wasn’t an extra burden for foreign investments of all kind. He assured ease of doing business in the country and promised of more reforms happening on these fronts.
Lastly, he pointed that the government would wait for the World Bank to measure how these efforts have helped in terms of ranking and would continue to track the inflow of funds which have resulted out of these measures.
