No threat of stagflation; RBI sensitive to growth, says Duvvuri Subbarao

 Reserve Bank of India governor D Subbarao on Monday allayed fears of stagflation in the economy and asserted that the central bank is sensitive to growth concerns but not at the cost of higher inflation.

Maintaining that it is comfortable with 5 per cent inflation, he said the RBI takes into account the growth-inflation balance and that is why there has been an easing of interest rates since January last year.