The Finance Minister said that it is not advisable to keep interest rates high for a long time to control inflation.
New Delhi:
Finance Minister Nirmala Sitharaman has said that it is very important to control inflation in the country to promote economic development. The Finance Minister said that it is not advisable to keep interest rates high for a long time to control inflation. The finance minister’s statement comes at a time when the retail inflation rate has hit a record high of 7.44% in July.
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Addressing the B-20 summit in Delhi, Finance Minister Nirmala Sitharaman said, “Inflation undermines demand in the economy. That is why it needs to be controlled.”
The finance minister warned that it is not advisable to keep interest rates high for a long time to control inflation. For this supply side restrictions also have to be removed. Nirmala Sitharaman said, “While controlling inflation, the central bank has to keep growth priorities in mind as well. Prolonged interest rate hikes have a negative impact on growth”.
The Finance Minister has urged international investors and business leaders to increase the pace of economic development in India.
Mentioned five priorities:-
To control inflation.
Increased investment is essential to promote sustainable development.
Focus on public health and education for sustainable development.
Climate Change Finance.
– Diversification of business supply chain.
Calling foreign investment important for economic development, Finance Minister Nirmala Sitharaman said that the government has made many reforms to attract investment. Along with this, he also mentioned funding for activities related to climate change.
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