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FM says govt borrowing won't pressure interest rates

India's Finance Minister Yashwant Sinha has said there would not be any pressure on the prevailing interest rates in the country due to the planned market borrowings of the government.

The Indian government is expected to raise Rs 1.17 trillion this fiscal

Commenting on the central bank's Credit and Monetary Policy, Sinha said cuts in bank rate, cash reserve ratio, repo rate and deposit rates were effected by the Reserve Bank on April 1 only after the government announced its borrowing needs.

The government would take note of the RBI's caution against the negative impact of high level of government borrowing on interest rates, Sinha told news reporters in New Delhi today.

He welcomed the RBI's advice on fiscal prudence and remarked that the policy was "well drafted" and signed off saying "it has put a responsibility on the government".

ALSO SEE

RBI Governor Bimal Jalan's policy statement

RBI's Credit and Monetary Policy 2000-2001

RBI's Credit and Monetary Policy 1999-2000

RBI's Credit and Monetary Policy 1998-1999

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