New Delhi: With inflation touching near zero level, the Prime Minister, Manmohan Singh, today said there is scope for further cuts in interest rates and assured the industry that credit needs would be met to enable the economy tackle the global financial crisis.
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"With ample liquidity and low inflation, there is scope perhaps for a further moderation in interest rates. Domestic credit flow for productive needs has to be definitely maintained at reasonable cost," Singh said in his meeting with industry leaders here before his departure for the G-20 meet in London next week.
The RBI governor, D. Subbarao, who was also present in the meeting, had almost disappointed the industry at the CII Annual Session on Thursday when he stated that further stimulus package would have a cost in the form of more borrowing requirements of the government.
