Union Minister Piyush Goyal described the link between food inflation and interest rates as an 'absolutely flawed theory.'

Commerce Minister Piyush Goyal called on the Reserve Bank of India to reduce interest rates. Goyal argued that using interest rates to control food price inflation was ineffective. RBI Governor Shaktikanta Das cautioned against assuming a rate cut.

The commerce minister emphasised that these were his views and not the official stance of the Union government.

( MENAFN - KNN India) New Delhi, Nov 15 (KNN) Union Commerce Minister Piyush Goyal has urged the Reserve bank of India (RBI) to reduce interest rates on Thursday, arguing that such action would boost India's economic growth.

Union Minister of Commerce and Industry Piyush Goyal questions RBI’s policy-making theory of considering food inflation while deciding on the key interest rates. RBI Governor Shaktikanta Das responds.

Union Commerce Minister Piyush Goyal advocated for an interest rate cut by the Reserve Bank of India (RBI) on Thursday (Nov. 14), emphasizing that food inflation should not be a determining factor in rate decisions.

RBI Governor Shaktikanta Das refrained from commenting on potential rate cuts in the upcoming December 2024 monetary policy. Earlier, Union Minister Piyush Goyal had urged the RBI to consider rate cuts in December.

He, however, clarified that it was his personal stance on the issue. Goyal, speaking on inflation trends, assured that prices would ease by December, stressing that India has experienced its lowest inflation levels under the Modi government since Independence.

I like to reserve my comments on rate action for December policy," said Shaktikanta Das while speaking at the CNBC-TV18 Global Leadership Summit. #CNBCTV18GLS2025 | In recent years the global economy has gone through unprecedented shocks.