“We need a better exchange management policy, a sharper response and a lower time to respond, ” Rajiv Kumar, vice chairman of the government think-tank NITI Aayog, said in an interview on Wednesday. The RBI needs to keep interest rates unchanged next week to boost growth and lend a helping hand to manufacturers who are struggling to access bank loans, Kumar said. RBI governor Urjit Patel has kept rates unchanged since August and cut inflation projections before turning hawkish at its April policy meeting. The recent spike in oil has boosted speculation the rate-setting panel will raise rates at its 6 June meeting. “It would be reasonable for RBI to maintain a steady pause so that they can see whether pressures on inflation are transitory,” Kumar said.

Source: Mint May 31, 2018 10:41 UTC