Stating that it was very hard to spell out when the RBI will be in a position to reduce interest rates, the central bank Governor, Dr D. Subbarao, has asked industrialists and others to go ahead with their projects.

Addressing members of the Andhra Chamber of Commerce and Industry here on Thursday, Dr Subbarao said that the best time to make investments was now. Saying that fortune favoured those who take risks, he advised investors to be ready to “battle the uncertainties”.

He said the criticism RBI was facing today was that the raised interest rates were moderating growth. But the RBI also had a responsibility to discharge to the 80 per cent of the people in the country who do not have a voice and are affected by rising inflation.

Growth was causing inflation and the two needed to be balanced. The goal of the apex bank was to bring down the inflation to the manageable level of four per cent. The bank wanted economic growth without any inflation.

Talking about interest from the savings point of view, Dr Subbarao said while the savers want a higher rate of interest the borrowers want a lower rate of interest. It was for the RBI to strike a balance.

The RBI Govenor said the value of the rupee was depreciating because the imports of the country were more then exports. While depreciation of the rupee value was beneficial to exporters it was a loss to importers.

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