New Delhi, Apr 15 (KNN) The three apex industry bodies - Federation of Indian Chambers of Commerce and Industry (FICCI), ASSOCHAM and Confederation of Indian Industries (CII) have asked the Reserve Bank of India (RBI) to cut interest rate in the backdrop of declining inflation.

“The Reserve Bank of India needs to work in tandem with the government in boosting growth by easing interest rates by at least 100 bps in the current fiscal,” said CII President, Kris Gopalakrishnan.

RBI will announce its annual monetary policy on May 3.

It last cut the policy rate on March 19 in its mid-quarter review by 25 basis points from 7.75 per cent to 7.50 per cent.

While announcing the rate cuts last time, RBI, Governor, D Subbarao had said, “The headroom for further monetary easing remains quite limited.”

Also, RBI’s decision to cut interest rates moderately has not translated into reduction in the cost of borrowing. (KNN)