Vibrant Summit: FM Arun Jaitley hopes for low rates from ‘responsible’ RBI

GANDHINAGAR: Finance minister Arun Jaitley again made a case for low interest rates, hoping that the Reserve Bank of India (RBI) will take note of the fall in food inflation and lower oil prices in recent months. “There is a case for lower interest rate. RBI is a responsible institution and I hope know they will take a note of all this,” he said.

Jaitley was replying to a question from RIL boss Mukesh Ambani on where should one expect interest rates to head going forward, at the Vibrant Gujarat Summit. Though the government has not directly pinned the blame on the slump in manufacturing on high interest rates, there have been plenty of signs that it is unhappy with RBI governor Raghuram Rajan’s unwavering anti-inflationary stance.

“My views on interest rates are fairly known,” Jaitley said. Separately, Jaitley said the fiscal deficit is more or less under control. “We have a fairly ambitious plan in terms of the divestment and you will hear a lot more in the coming days,” he said, this time replying to Bharti Airtel boss Sunil Mittal about the elbowroom that the government has to experiment bold measures in the upcoming budget.

The government is also targetting revenues through the sale of spectrum in this fiscal and is expected to broadly stick to its plan on direct and indirect tax collections. “The present government is willing to take bold steps and there is no internal as well as external hindrance,” Jaitley said.