Economy needs 50-100 bps interest rate cut: Arvind Panagariya

The economy needs 50-100 basis points of interest rate cut, Arvind Panagariya, a senior government adviser, said on Thursday, adding to a growing clamour within the government for further monetary easing to juice up economic growth.

The comments from Panagariya, who runs policy commission NITI Aayog, came weeks before the Reserve Bank of India (RBI) reviews interest rates.

At its last policy review, the central bank left policy repo rates on hold at 7.25 per cent, tying future cuts to inflation outlook.

(Reuters)