No rate cut by RBI is unfortunate; still positive on India, says Mark Mobius

Mark Mobius, founder of Mobius Capital Partners said he was and still is very positive on India but the country's central bank not cutting interest rate is an unfortunate thing.

"I believe the Reserve Bank of India (RBI) should have lowered rates because the Indian market does need lower and lower rates. Hopefully, this is going to be a temporary situation. As we go forward, we can see lower rates because the economy needs it very badly and it is important to see this economy continue to grow, " he said, adding that concerns about inflation are probably overworked. Hopefully, there will be a change coming forward when they realise that lower rate is needed for the economy.

Talking further about the RBI decision and growth  he said, “I can see their concern about inflation but it is a short-term concern. The real concern is the growth of the economy because if the economy is growing then you can solve these price problems. So, I believe that it is probably a little bit too short-sighted not to lower rates because the health of the economy is number one and that is really the concern that we should be looking at and not the short-term situation with the commodity prices,” said Mobius.