The monetary and banking regulator, Reserve Bank of India (RBI), will soon decide on whether or not to slash interest rates in the near future. It will announce its decision in RBIs September policy. It is reported that RBI is contemplating the rate cut to increase capital inflow to the country.
Talking on this matter, RBI Deputy Governor H R Khan said, "You cannot say when the rate cut will come. Wait for our September policy." Mr. Khan was in Bhubaneswar to attend a function of Institute of Chartered Accountants of India (ICAI).
On the steps taken by RBI to increase the capital inflow to India Mr. Khan said, "We are trying to improve capital flow through FDI and NRI deposits. Our approach is that there should be orderly movement of rates in the market and there should not be any volatility."
Further, while addressing the conference, Mr. Khan also said that there has been a decline in the import of gold in the country. RBI has formed a committee on this which is likely to present its report in two to three months time. He added that the country should focus on domestic exploration of key resources like oil and gas.