The apex bank and central government are worried about slowdown in industrial growth following international financial crisis. More monetary steps are expected by RBI in coming days including revision of key interest rates. 

Global consultancy firm Dun and Bradstreet expects that Reserve Bank may cut CRR and Repo rate by 50 basis points to ensure proper money supply in country’s financial system. The central bank had already slashed Repo rate and CRR in its previous policy revision causing some stability in the monetary system.

Dun and Bradstreet feels that interest rate cut is the need of hour to increase investment prospectus and to reduce cost of borrowing from banks. It established that high interest rates and liquidity problem adversely impacted the growth momentum during the first half of the current fiscal.

Industrial growth declined to 4.94 per cent as compared to 9.49 per cent last year, due to tight monetary conditions.

Meanwhile, Prime Minister’s Economic Advisory Council Chairman, Suresh D Tendulkar, also asked for interest rate cuts to help the banks as well as recover the growth story of the economy. He hoped that inflation would soon come under control, as international commodity prices and crude oil rates are continuously decreasing.