April 5, 2016 7:28 AM

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RBI policy review today; Arun Jaitley calls for policy easing

The Reserve Bank will unveil its first bi-monthly policy review today for this fiscal amid expectations of a 0.25 to 0.50 per cent cut in interest rates to boost industrial growth and economy.Finance Minister Arun Jaitley earlier in the day pitched for policy easing, saying high rates could lead to a sluggish economy.<br/><br/>Bankers and experts too are expecting lower borrowing costs as the inflation trajectory is down and the government has pledged to stay on the fiscal consolidation path.<br/><br/>Keen to show that it means business, the government has pared the small savings interest rate by up to 1.3 per cent, providing cushion to the Reserve Bank for lowering the policy<br/>rate and for banks to pass on its benefits to consumers.

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