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No immediate move to cut interest rate: Jalan

Reserve Bank of India Governor Bimal Jalan said on Thursday that there was no immediate move to cut the interest rate.

"Taking a 50-year perspective, the real interest rate has been higher in India but we are comfortable with the current rate," Jalan told newspersons after chairing a session at FICCI's conference on "Indian Banking: Global Benchmarks" in Mumbai on Thursday.

Referring to reduction in bank rate in October during the mid-term review of the Monetary and Credit Policy, he said "I cannot say anything."

Referring to Union Minister of State for Finance Anandrao Adsul's comment for a need to reduce the rates, the governor said: "I share the view and interest rates have to come down in the long term. The bias towards soft interest rate regime continues."

On the impact of spurt in international crude oil prices on India's economy, Jalan said" "Oil price rise is a matter of concern and no oil importing country welcomes this. We do not see any impact on our economy from the foreign exchange and interest rate point of view."

On inflation, he said: "We are watching the situation as to how long the prices continue to rise." Earlier participating in the deliberations, the RBI governor stressed on the need for risk management, which, he said, was extremely vital in the financial sector.

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