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Jun 27, 2012, 05.03 PM IST
CNBC-TV18's Rituparna Bhuyan reports, quoting sources, that commerce minister Anand Sharma wrote to former finance minister Pranab Mukherjee and demanded his intervention in reducing interest rates
The recent monetary policy review by the RBI disappointed corporate India as the central bank left key policy rates unchanged. CNBC-TV18's Rituparna Bhuyan reports, quoting sources, that commerce minister Anand Sharma wrote to former finance minister Pranab Mukherjee and demanded his intervention in reducing interest rates.
Also watch the accompanying video According to sources, commerce minister Anand Sharma wrote the letter just a day after the monetary policy was announced by the RBI and stressed that the high interest-rate regime impacted not only investments, but also growth. The letter also pointed out the alarmingly low IIP data in March and April and listed several reasons demanding a cut in interest rates. Sharma, in the letter, also explained that the high interest-rate regime did not have the desired impact on headline inflation. He blamed high food prices for rising headline inflation, but pointed out core inflation had come down, from about 7.64% in December 2011 to about 5% in May 2012.
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