With
core inflation showing signs of a decline, Department of Economic Affairs Secretary Arvind Mayaram is hopeful that the Reserve Bank of India will ease monetary policy to support growth.
"We believe that the RBI will do a comprehensive and nuanced analysis of the economy and take the right decision and we hope it will vote for growth. I am happy with what he (RBI Governor D
Subbarao ) has said," Department of Economic Affairs Secretary Arvind Mayaram said.
Though the RBI governor has emphasised the need to bring the inflation lower, he has welcomed the steps taken by the government over the last six months to curb the fiscal and current account deficits.
Industry is demanding a cut in repo rate to help revive India's sagging GDP growth that hit decade's low of 4.5 per cent in the third quarter of 2012-13.
The secretary said the rise in Wholesale Price Index (WPI) based inflation is largely due to food inflation. As per the WPI data, inflation in manufactured goods has moderated to 4.51 per cent in February against 5.82 per cent in the same month last year.
Most analysts are expecting the RBI to do a trade-off with growth with at least a 0.25 per cent cut in the short-term lending rate in the March 19 policy meet.
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