As per Chief Economic Adviser RBI may reduce rates further.

Kaushik Bardia,

27th January 2015

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The RBI rate cut follows decline in inflation as well as the commitment of the government to stick to the fiscal deficit target of 4.1% of the GDP in the current financial year.

Gurmeet,

27th January 2015

Comment

We will have to wait for the World Bank to act how these efforts have helped in terms of ranking. Besides, the real action will be seen in terms of actual investments that would flow in. RBI Governor Raghuram Rajan lowered the benchmark repurchase rate to 7.75 per cent from 8 per cent, the first reduction since May 2013.

Kunal,

27th January 2015

Comment

Subramanian also said the government is committed to making sure that the taxation is not an extra burden for foreign investments of all kinds.
Besides, there are also issues like land laws, labour laws and reforms have been happening on those fronts.

Gurmeet,

27th January 2015

Comment

The RBI's own statement says that this is not just a change in rate, but a shift in its monetary policy deal provided inflation remains low and there could be more relief.

A number of business leaders and bankers, including ICICI Bank's Chanda Kochhar and Kotak Group's Uday Kotak, also said at the WEF that the RBI may look at further decreasing of rates as inflation appears to be under control.

Kunal,

27th January 2015

Comment

Admiring RBI's role in helping bring down inflation, Chief Economic Advisor Arvind Subramanian said the central bank may further decrease the interest rates as improvement on price front has opened the space for monetary relieve.

Gurmeet,

27th January 2015

Comment