Economy Will Grow At 5.5 percent In Q4: Rangarajan
“As we go ahead, I expect growth rate to pick up further to 5.5-6 per cent in the next fiscal year,” Dr. Rangarajan said.
On possibility of RBI cutting interest rate in the next policy review which is scheduled for April 1, 2014, Dr. Rangarajan said, “I think retail inflation at 8 per cent is still high rate. But I believe that if inflation moves down further it will give greater room to the monetary authority to cut interest rates.”
Retail inflation in February has come down to a 25-month low of 8.1 per cent.
Wholesale inflation fell to nine-month low of 4.68 per cent in February due to easing prices of kitchen staples like onion and potato.
The decline in inflation is much on the expected lines of the Reserve Bank, which had hiked key interest rates by 0.25 per cent in its last monetary policy review.
The Reserve Bank factors in both retail and wholesale price based inflation data in its monetary policy.
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