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March 1, 2001
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Sinha hopes for early RBI decision on rates


Finance Minister Yashwant Sinha said on Thursday that he hoped his Budget would prompt an early response from the Reserve Bank of India (RBI) on revising interest rates.

"I have done my best. I have undertaken fiscal consolidation," Sinha told a post-budget business seminar.

"I hope the (RBI) Governor and his board will take a decision at an early stage. Such a decision is warranted," he said.

In a reformist budget presented to Parliament on Wednesday, Sinha announced cuts in administered interest rates on small savings schemes ranging from 100-150 basis points.

The rates on these schemes are used as benchamrks by banks to set their long term deposit rates.

He also set a lower fiscal deficit target of 4.7 per cent of GDP for 2001-02 (April-March) against 5.1 per cent for the current year.

Analysts and bond traders expect the RBI to cut its bank rate following the budget proposals.

Budget 2001

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