RBI might slightly cut interest rate, says Kaushik Basu

New Delhi, PTI | Updated : 14 January 2019, 10:57 PM
RBI might slightly cut interest rate, says Kaushik Basu (file photo)
RBI might slightly cut interest rate, says Kaushik Basu (file photo)

Former chief economic advisor Kaushik Basu on Monday said the Reserve Bank of India (RBI) could “slightly” reduce interest rate to boost growth. “NPAs have made the banks cautious. But, India can do with slightly lower rate of interest,” Basu said at an interactive session organised by the Indian Chamber of Commerce here.

The central bank should be left alone with complete autonomy, he added. The RBI’s monetary policy review is slated in February. Basu also said that the investment rate in India was on the decline.

Also Read | Reserve Bank of India imposes Rs 1 crore penalty on Bajaj Finance

Talking about the GST, he said it was borrowed from advanced countries and “poorly implemented”, and demonetisation was a “bad idea”.

First Published: Monday, January 14, 2019 10:50 PM
For all the latest Business News Download the News Nation App available on Android and iOS.