According to Assocham survey it has been reported that the Reserve Bank is likely to cut rates by 0.25%. At the first credit policy review held last week, after Mr. Modi being appointed as the new PM of the country RBI decided to reduce the rates by 0.25%.
Mr. Rajan governor general of the RBI has taken the measure to maintain a balance between fighting inflation and reviving growth. The Final review policy of the RBI will be declared tomorrow. However a large number of corporate leaders and economists are expecting that the central bank chief would show much more pragmatism.
It has been also reported that the economic growth of the country has been below 5% mark for the second consecutive year. The economic growth n the year 2013-14 was found to be 4.7%. Many industry lenders are urging for the low interest rates in order to raise the growth.