Time right for rate cut: Finmin

NEW DELHI: The finance ministry is of the view that the conditions are ripe for an interest rate cut, citing decline in global crude oil prices, improvement in the monsoon situation, sharp easing of wholesale prices, moderation in retail inflationand an expected robust farm output. 

"Decline in commodity and wholesale prices shows that inflation is not the dominant worry for the country right now," a senior finance ministry source, who did not wish to be identified, said on the eve of monetary policy review by the RBI Nifty Trading Tips 

The finance ministry has been pushing for a cut in interest rates to revive the economy, while the RBI would like to be cautious as far as inflation is concerned. Reviving growth and creating jobs is an immediate concern for the NDA government and North Block has often put forward views about the need to cut interest rates to give a push to growth Stock Market Tips  

Easing global commodity prices have come as a boon for the inflation situation at home and sharp decline in global crude oil prices has helped ease pressure. On Monday, global crude prices hit a six-month low. Industrial poduction output also remains sluggish and India Inc has persistently called for a reduction in rates to spur investment 

Policymakers have also been upbeat after the revival in monsoon rains. Receding drought fears have led to optimism on the food front. The inflation situation has been under control with wholesale price declining for eight consecutive months. While retail inflation has shown signs of an uptick, it still remains below the central bank's comfort level. Some economists have flagged the increase in food prices but the finance ministry sources downplayed the trend Free Share Tips