Rate Cut no Silver Bullet to Boost Economy: Sinha
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.