Govt will argue for lowering of rates by RBI: Chidambaram

Says RBI should take note of softening headline inflation, rising CAD

Government will continue to argue for lowering of interest rates by Reserve Bank in the backdrop of softening headline inflation and the need to promote economic growth, Finance Minister P Chidambaram today.

"The RBI has to weigh the fact that headline inflation has come down even though consumer price inflation is sticky...It has to keep current account deficit in mind before it lowers interest rate.

"But government is always pro-growth and the government will always argue for lower interest rates", he said in an interview to CNBC TV18 here.     

RBI is scheduled to announce the monetary policy for the current financial year on May 3 during which it will take a call on interest rates keeping in view the inflation and other macro-economic parameters like growth rate, industrial production etc.     

Chidambaram, who is here to woo investors, said that although inflation based on movement in wholesale prices has come down, the retail inflation in double digit has continued to be a cause of concern.     

"Core inflation has indeed come down. Headline inflation has also come down but the consumer price inflation is still very sticky at double digit and that's what affects the people", the Minister said.