Jaitley hopes RBI cuts rates after considering all factors

Finance Minister Arun Jaitley Sunday said he had made his views clear on the need to cut interest rates to boost growth and hoped the Reserve Bank of India (RBI) would take a decision after taking into account various factors.

"I, on the same evening (June 3 and Aug 5) already issued a clear statement and I think that's very clear. This an issue that the RBI decides and I am sure they factor in various circumstances," Jaitley told mediapersons after addressing the RBI central board here.

The RBI left key interest rates unchanged in its third bi-monthly monetary policy review Tuesday.

Known for the primacy he accords to controlling inflation, RBI Governor Raghuram Rajan said in his policy statement that RBI will continue to closely monitor inflation developments, and remains committed to the disinflationary path of taking Consumer Price Index (CPI) inflation to 8 percent by January 2015 and 6 percent by January 2016.

"As of now, we think the policy is on target (inflation control). We (RBI's policy measures) are contingent on the data coming in," Rajan said Sunday.

Jaitley told the RBI board that the policy regime was being geared to attain higher growth, lower inflation and sustainable external balance in the backdrop of the less than 5 percent growth in last two fiscals.