Rate Cut no Sil­ver Bul­let to Boost Econ­omy: Sinha

The Economic Times - - Economy - Our Bureau

New Delhi: The min­is­ter of state for finance Jayant Sinha said the gov­ern­ment is look­ing at var­i­ous ways to boost the econ­omy and that rate cut is no sil­ver bul­let to im­me­di­ately boost the econ­omy.

“Rather than think­ing that there is some sil­ver bul­let that we can fire through rate cuts that will im­me­di­ately boost the econ­omy, we are look­ing at the real bot­tle­necks in mone­tary trans­mis­sion, ex­e­cu­tion on the ground and change in deal­ing with some of crony cap­i­tal­ism, black money type is­sues. So, we are work­ing on those fronts,” Sinha said at an event or­gan­ised by the CII .

He said credit growth across the sys­tem (state-run and pri­vate banks) is run­ning at the level of 12%, which is a “very healthy growth rate”, and that there is plenty of de­posit in the sys­tem to finance projects.

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