Arun Jaitley favours interest rate cut

NEW DELHI, Oct 25 (Reuters): India's Finance Minister Arun Jaitley favors a cut in interest rates to trigger demand in the construction sector, a newspaper report said on Saturday, but the central bank has signal it will not ease policy until it is confident of lower inflation.
In May, Prime Minister Modi was elected on promises that his government would create jobs and rejuvenate the Indian economy, but experts were disappointed by Jaitley's first budget and a lack of early progress on fixing structural economic problems.
"Currently, interest rates are a disincentive. Now that inflation seems to be stabilizing somewhat, the time seems to have come to moderate the interest rates," Jaitley said in an interview with the Times of India.