RBI may be able to cut interest rate as inflation eases: FM

Finance minister P Chidambaram today expressed hope that the Reserve Bank would be able to reduce key interest rate with the further easing of inflation.

"As inflation eases further, there will be an opportunity for monetary policy to take measures to mitigate growth risks," he said in a written reply to the Lok Sabha.

Chidambaram said that high inflationary pressures had necessitated the adoption of tight monetary policy by the RBI.

(PTI)