RBI might slightly cut interest rate, says Kaushik Basu

"NPAs have made the banks cautious. But, India can do with slightly lower rate of interest," Basu said at an interactive session organised by the Indian Chamber of Commerce in Kolkata. The central bank should be left alone with complete autonomy, he added.

The RBI's monetary policy review is slated in February. Image source: Reuters

Former chief economic advisor Kaushik Basu on Monday said the Reserve Bank of India (RBI) could "slightly" reduce interest rate to boost growth.

"NPAs have made the banks cautious. But, India can do with slightly lower rate of interest," Basu said at an interactive session organised by the Indian Chamber of Commerce here.

The central bank should be left alone with complete autonomy, he added.

The RBI's monetary policy review is slated in February.

Basu also said that the investment rate in India was on the decline.

Talking about the GST, he said it was borrowed from advanced countries and "poorly implemented", and demonetisation was a "bad idea".

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.