Industry members are expecting the Reserve Bank of India (RBI) to cut its key lending rates during its upcoming review meeting on 19 March, 2013 in order to revive the Indian economy.

The CEOs of various firms are expecting the central bank of the country to loose tis monetary policy and boost liquidity in the third largest economy in Asia. They believe that the lower interest rates will be able to boost investments in the country and help revive the economic growth.

According to a poll of 15 CEOs by Business Standard, a majority of the corporate heads believe that a cut in interest rates would help revive demand, which has remain negative in several sectors of the Indian economy. They said that a cut would encourage the industry players to boost investments in the country.

Latest estimates show that the inflation in the country would fall to 6.2-6.7 per cent till the beginning of the next financial year from 1, April, 2013. This will set the right stage for a rate cut in the economy by the RBI, which has earlier indicated that the rate cuts would be linked to inflation level in the country. Inflation has fallen in recent times but it still remains a serious concern for the central bank.