Aug 11: Calling for a reduction in lending rate, Chief Economic Adviser (CEA), Dr Arvind Subramanian today said that the trend in the economy is deflationary which suits a rate cut.
Addressing a press conference after presentation of Economic Survey 2016-17: Volume –II in Parliament, Dr Subramanian said inflation is not only under control, but it is going to be under control in near future.
According to him, keeping the facts and reduction in repo rate by Reserve Bank of India (RBI) some banks have reduced the rates, but still there is scope for slashing the lending rates.
Dr Subramanian said that demonetization has resulted in achieving goals, as it has helped increase the number of people filing income tax. This, he said, would have a better impact on the economy.
Pointing out that demonetisation has also resulted in a less cash economy as 20 per cent reduction has been noticed in the demand of cash after demonetization, Dr Subramanian added that the Goods and Services Tax (GST) regime is seeing early signs that are encouraging.