Inflation continues to be of concern: RBI

Font Size

Print

Feedback

Email

Discuss

Save & Share Article

What’s this?

Digg	My Yahoo	Fark
del.icio.us	Newsvine	Reddit

Rate This Article

Mumbai, March 28: Reserve Bank said inflation, which surged to a 13-month high of 6.68 per cent for the week ended March 15, continues to be a concern and stressed it aimed to keep it under five per cent and bring it still lower in the medium term.

"The objective currently is to contain the inflation rate within an upper bound of 5 per cent and attempt to reduce it further in the medium term," RBI Deputy Governor Rakesh Mohan said at the Entrepreneurship Development Institute of India at Ahmedabad, a speech copy released here stated.

"Inflation was an issue during much of 2007, and continues to be of concern now," Mohan said.

Speaking on the role of financial sector to promote innovation and growth, Mohan said monetary policy endeavour was to provide a financial environment of low inflation and stability.

"To keep the momentum of high growth, it is extremely important to recognise that the best contribution monetary policy can make is indeed to ensure that inflation and inflation expectations are well anchored," Mohan said.

He said that monetary policy can foster innovation through an environment of low inflation, low inflation expectations and maintaining financial stability.

The RBI Deputy Governor said price and financial stability were very crucial to sustain the growth at current levels without any disruptive forces coming into play.