Rate cuts may be part of stimulus plan: Nath

Lowering interest rates and an interest subsidy on bank loans to exporters could form part of a stimulus package likely to be announced by the government and the Reserve Bank on Saturday, the trade minister, Kamal Nath, said.

Reserve Bank governor, Duvvuri Subbarao, will address a news conference at noon on Saturday, the Reserve Bank of India said in a statement on Thursday. It did not say what the news conference was for.

A senior government official had said on Thursday authorities were preparing measures to boost infrastructure and the auto sector and that the Reserve Bank would cut interest rates to provide stimulus to the financial sector.