Market expert calls for interest rate reduction

As the retail inflation dips to 4.38 percent, market experts on Saturday stressed on the need to reduce interest rate in order to boost the country's growth rate.

"Retail inflation is at a three-year low of 4.83 percent. This is good news, but the sad news is that industrial output has reduced by 4.2 percent. There is a reduction in industrial output. In the last policy, the RBI has not reduced rates of interest, the reason being it wants to keep inflation under control and is right in doing so," said Akash Jindal, a market expert.

"The inflation is already under control, the retail inflation has come to a three-year low. Now, whether it is permanent or temporary, it can be debated," he added.

Jindal further said the focus should be on growth at the moment and the RBI should bring down the rate of interest.

"If it is done then the country will move towards growth and that is what the country wants. If we have growth, then there will be more jobs opportunities. There are many new engineers and MBAs who are not getting proper jobs. So, if we have growth then we will have more jobs," he added.

The current retail inflation rate is the lowest level of Consumer Price Index (CPI) based inflation since the government started computing the new series of data in January 2012.

It stood at 5.52 percent in October 2014, while same was over double the current level at 11.16 percent in November 2013.

The food inflation also came down to 3.14 percent in November as against 5.59 percent in the previous month.