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Millennium Post

'Choking demand through monetary action suicidal’

The Reserve bank should not always use monetary tools to control inflation as choking demand will be ‘suicidal’ for economic growth, Assocham said on Sunday.The chamber said that in a study a majority of 200 participants said that it is wrong on the part of RBI to be obsessed with always using monetary tools to control inflation.’The price rise cannot and should not always be controlled by choking demand, that will be suicidal for growth. In the name of sustainable and long-term growth, we cannot afford to kill the growth,’ it said in a statementIt said that to boost investments and revive the country’s economic growth which grew by a decade low of 5.5 per cent during the first quarter of this fiscal.In September, inflation rose to 7.81 per cent, a 10-month high from 7.55 per cent in the previous month.
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