The Reserve Bank of India (RBI) should cut its benchmark interest rates to boost economic growth and ignore food prices while making monetary policy decisions, the commerce and trade minister said on Thursday. Union Industry, Piyush Goyal.

Speaking at the Global Leadership Summit organized by CNBC TV18, Goyal said taking into account food inflation while determining rates was an “absolutely wrong theory”. However, he clarified that these statements were his personal opinions and not those of the government.

The Economic Survey 2023-24 had previously said that the monetary policy framework should consider targeting inflation that excludes food items, which is driven more by supply than demand. Retail inflation rose to a 14-month high in October, mainly driven by rising vegetable prices. This, in turn, reduced hopes for a cut in interest rates by RBI next month. Goyal said inflation would come down by December.

Indices end busy week with marginal losses

Nvidia enters the Dow 30 index; Intel will be removed from the Dow Jones Industrial Average starting today

Markets Fall, Give Up Trump-Fueled Gains

Fed rate cut decision today: Trump presidency puts central bank in a very difficult situation

RBI Governor Shaktikanta Das, however, said in August that India We cannot and must not become complacent just because core inflation has fallen significantly. “The general public understands inflation more in terms of food inflation than in terms of other components of overall inflation,” he said.

On slowing consumption, Goyal advised companies to reduce prices.

“Manufacturing in India offers a huge competitive advantage. So I think if smart business people start offering better prices, better value for money. moneyI’m sure that walk will give them a boost. It’s up to them whether they want to maintain high margins,” Goyal said.

Several consumer goods companies have hinted at a slowdown in demand, particularly in urban markets, which is also reflected in their September quarter results.

“I am one of those who believe that economies of scale, that the enormous demand met by 1.4 billion Indians, the demand that our growing population economy” said Goyal.

He asked investors to look at the long-term picture and not panic about every quarterly result. “At least we in government don’t work under a ‘quarter se quart tak’ philosophy. I think it is time for investors to also look at the long term and not panic every quarter,” Goyal said.