The Reserve Bank of India has said the near-term economic growth outlook for the country appears brighter than during the last fiscal. In its Annual Report 2015-16, the RBI forecast 7.6 per cent GDP growth this fiscal, up from 7.2 per cent growth in the last fiscal. RBI Governor Raghuram Rajan noted, in the Annual Report, that the room to cut policy rates can emerge only if inflation is projected to fall further. The RBI Governor observed that the apex bank is also working with the government and banks on ensuring that banks have the capital to make provisions, support new lending, and thus pass on future possible rate cuts. The RBI's report said economic growth is showing signs of picking up. It said the key weakness is in investment, with private corporate investment subdued. And Governor Rajan further observed that the willingness of banks to cut lending rates is muted.