Union Finance Minister, Shri Pranab Mukherjee has stated that monetary policy measures announced by Reserve Bank of India today will lead to easing of inflation, which is already going down, and it should also keep us fully on track in terms of growth.
Full statement issued by FM Shri Pranab Mukherjee on this occasion is as follows :
“The monetary policy just announced by the Reserve Bank of India (RBI) is another calibrated step in the right direction. I am very pleased that the RBI has not only raised policy rates but has narrowed down the spread between the repo and reverse repo rates by 25 basis points. This has been done by raising the reverse repo rate by 50 basis points and repo rate by 25 basis points. A narrower spread shall make for a more efficient financial system.
I also want to endorse the RBI’s decision not to raise the cash reserve ratio (CRR). With the successful 3G auctions, there is going to be a natural tightening of credit. Under these circumstances, not tightening credit by direct quantitative measures like the CRR shows sophisticated thinking. In brief, I expect that this policy will lead to further easing of inflation, which is already going down, and it should also keep us fully on track in terms of growth.”