Mumbai, Sep 12: The Reserve Bank of India (RBI) is not likely to cut down the interest rates in the near future.
Even though the inflation rate had attained comfort levels as per RBI's projections, the price trends need to be well established, said Prime Minister's economic advisory council chairman Dr C Rangarajan.
Speaking to reporters on the sidelines of a FICCI event here today, Dr Rangarajan, expressed satisfaction over softening of the inflation, which has come to a comfort level of 4 per cent in recent past, and attributed it to the monetary policy which had played an important role in keeping it well anchored.
However, Dr Rangarajan said, the price trends have to be well established before reducing interest rates. ''We also need to watch how the prices behave during the year and therefore monetary policy changes have to come after a clear trend has been well established,'' Dr Rangarajan asserted.
On capital raising woes of public sector banks, Dr Rangarajan suggested that government could bring in more capital, private sector could bring in a complementary amount or the definition of the government sector could be widened to include other public sector organisations.
Dr Rangarajan also stressed that the present trend of growth, more than 9 per cent, may continue further.