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RBI to lower rates soon: Govt officialc
December, 04th 2008
The Reserve Bank of India is likely to lower interest rates soon and the government is planning excise duty cuts for the automobile sector, a senior government official said on Thursday. Prime Minister Manmohan Singh on Tuesday held a meeting of a high-powered group set up to chart out measures to deal with the global financial crisis. "On the financing side, the Reserve Bank of India will announce the measures," the official, who attended the meeting but did not wish to be identified, told Reuters. "They would include a range of measures such as reduction in repo and reverse repo rates," the official said. Asked when he expected the measures to be announced, he said "soon." He did not give any specific date. "There will also be package for the infrastructure sector," the official said, but did not give details. According to a statement issued late on Tuesday by the prime minister's office, the group discussed in detail measures required to be taken to counter the economic slowdown. "Based on his directions, a package of measures is being prepared which will be finalised and announced by the end of the week," the statement said.
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