Financial Times FT.com

Rate cuts fail to revive Indian economy

By James Lamont in New Delhi

Published: April 22 2009 03:00 | Last updated: April 22 2009 03:00

A series of interest rate cuts in India has failed to lead to cheaper commercial lending, leaving Asia's third largest economy to grow at only 6 per cent this year, the central bank said yesterday.

The Reserve Bank of India expressed frustration in its annual policy statement that monetary adjustments to stimulate the economy in the face of the global financial crisis had not resulted in significantly lower lending rates by commercial banks to the private sector.

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