The RBI on Tuesday continued its emphasis on combating inflation, which has hit the common man very hard, and refrained from lowering interest rates in its mid-year monetary policy review. It lowered the cash reserve ratio (CRR) by 0.25 percentage points.
Finance Minister P Chidambaram and the private corporate sector were united in condemning the RBI’s pro-people measures, with the former saying that growth is as much a challenge as inflation and government would ‘walk alone’ to tackle growth.
But RBI Governor D Subbarao defended the bank’s stance, saying that ‘managing inflation remains the primary focus of monetary policy’.
Finance Minister P Chidambaram and the private corporate sector were united in condemning the RBI’s pro-people measures, with the former saying that growth is as much a challenge as inflation and government would ‘walk alone’ to tackle growth.
But RBI Governor D Subbarao defended the bank’s stance, saying that ‘managing inflation remains the primary focus of monetary policy’.