Arun Jaitley hopes for sustained low rates, inflation under control

Arun Jaitley hopes for sustained low rates, inflation under control – Unique Times

Expecting inflation to stay in check, Finance Minister Arun Jaitley today said he’s hopeful that the downward trend in interest rates will stay.

Speaking at a housing market event here, he said the RBI has lowered the rates on four occasions this year, which was a positive step for the real estate sector that was earlier adversely affected by the hardening of rates.

“Interest rate hardening had wedged this (real estate) sector adversely and it had been a pre-requisite that we kept inflation under control for a sustained period of time.

“Fortunately, that has happened. So, we can also look back with a sense of satisfaction that over the last one year, the RBI has also taken positive steps, at least on four occasions, as far as the rates are concerned,” Jaitley said.

“Hopefully, this movement is there to stay and within the current global price structure, we are able to keep inflation under control,” he added.

The Reserve Bank has cumulatively lowered its policy rate by 1.25 per cent in 2015 so far, including by 25 basis points thrice and a better-than-expected 50 basis points in the last monetary policy review.

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