Is there is need of call for reduction in interest rates to boost the economy ?

Is there is need of call for the reduction in interest rates to boost the economy?

PM met with industry caption on Tuesday to take stock of the economy. In the meeting, industry favours the need of cut in RBI's policy of interest rates to stimulate the economy. Reserve bank's short-term priority is to bring down inflation, Which is expected to aid economic growth. At the moment, RBI is well placed to meet its first milestone which is to bring  consumer inflation below by January 2016.

                     RBI can not trade the monetary policy on the basis of previous data but making it on the future basis, as there may change in policy rules and it takes to to implement on it by it's rules. Some factors that are  RBI believes, which aided disinflation this year are of domestic origin, governments food monetary policy makes rein in inflation and factor of collapse in oil prices.

On the other hand there are some views on its counterparts that there are no sense in make cut in interest rate by RBI. they believe that there is no such need and further need will  depend on decision of US federal open market committee. In such a scenario, it is best for the central bank to retain the status quo and await further.

Source- TOI