As WPI Inflation contracts for 10th straight month, India Inc calls for rate cut
Updated: Sep 14, 2015 03:14:27pm
New Delhi, Sept 14 (KNN) Continued decline in inflation levels underscores the need for an urgent revival in consumer demand, industry body FICCI said today while commenting on the Wholesale Price Index (WPI) based inflation data released today.
“This would lead to better capacity utilization which in turn would spur investments. Amidst the prevailing global headwinds, these are the most critical factors for firming up India’s growth aspirations,” said Jyotsna Suri, President, FICCI.
The WPI based inflation contracted to (-) 4.95 per cent in August for the tenth straight month, against negative 4.05 percent in July.
“India remains a net importer of key commodities and given the muted global prices, the possibility of any immediate risk of importing inflation remains minimal. Under the present circumstances, it would be most appropriate for the Reserve Bank of India to give weight to growth considerations and announce a deeper cut in the policy rate on September 29, 2015.
We hope that the Reserve Bank of India and the Banking community will coherently work towards lowering of lending rates”, added Suri. (KNN Bureau)
“This would lead to better capacity utilization which in turn would spur investments. Amidst the prevailing global headwinds, these are the most critical factors for firming up India’s growth aspirations,” said Jyotsna Suri, President, FICCI.
The WPI based inflation contracted to (-) 4.95 per cent in August for the tenth straight month, against negative 4.05 percent in July.
“India remains a net importer of key commodities and given the muted global prices, the possibility of any immediate risk of importing inflation remains minimal. Under the present circumstances, it would be most appropriate for the Reserve Bank of India to give weight to growth considerations and announce a deeper cut in the policy rate on September 29, 2015.
We hope that the Reserve Bank of India and the Banking community will coherently work towards lowering of lending rates”, added Suri. (KNN Bureau)
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