Inflation fears overdone, RBI should cut rates: Joseph Stiglitz

NEW DELHI: Stating that inflation fears in India are over-done, Joseph Stiglitz, Professor at Columbia University told ET Now that the Reserve bank of India ( RBI) should look to cut interest rates and push growth.

"I don't think inflation has as adverse an effect as many people say in the financial market," Stiglitz said. Calling inflation in India within the moderate range, Stiglitz felt that raising interest rates is unlikely to make a 'big' dent on inflation.

"Low growth has a huge cost, it is a waste of resources and causes lower income and higher unemployment," he added.

Commenting on the outlook of rating agencies on India, Stiglitz said that countries should put very little weight on what they say. "They have an amazingly bad track record and they are unfair on countries like India," he opined. Only 'some' attention should be given to what rating agencies say because a lot of 'foolish' people pay attention to them, he added.

Asked about the recent slew of economic reforms announced by the government, Stiglitz said that they are symbolic in nature and their importance should not be over-emphasised.