FM to nudge RBI chief for rate cut

New Delhi: Finance Minister Arun Jaitley is likely to impress upon RBI governor Raghuram Rajan on the need for a cut in interest rate when he meets him on Monday.

With expectations of GDP growth moderating in the second quarter, the government is keen to give a fillip to the economy, particularly, when the inflation has come down to multi-year low.

Sources said Rajan will make the customary call on the Finance Minister on Monday, a day before he presents the policy. Jaitley, they said, may push the central bank chief to lower cost of capital to prop up growth.