RBI considers new interest rate cut

It’s needed to push India’s economic growth to 8%.

Finance Minister P Chidambaram also argued for another interest rate cut by the Reserve Bank of India, the central bank, as headline inflation weakens.

"Well, I think so. We see the beginning of green-shoots, more enquires for loans and there are more project proposals, stalled projects people are beginning to enquire.

"I think at this time perhaps there is still a room for cutting interest rates, but let me add ...That is the call the (RBI) Governor has to take," he said.

He said the government will continue to for an interest rate cut, which is slated to announce monetary policy for 2013-14 on May 3.

"The RBI has to weigh the fact that headline inflation has come down yet 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," Chidambaram said.