RBI Guv Subbarao hints he may cut rate on 18 Dec
7 Dec 2012 7:34 AM IST
Reserve Bank of India (RBI) Governor D Subbarao on Thursday hinted at an easy monetary regime in the coming days, citing steep moderation in growth and expressing optimism that inflation will cool off from the next quarter. 'We are expecting that inflation will trend down starting the fourth quarter. As we go into our mid-quarter policy on December 18 and the quarterly policy on January 29, we will take into account the growth-inflation trajectory and calibrate our monetary policy accordingly,' he told reporters after the central board meeting of RBI here.
He, however, said 7.5 per cent inflation is still high, though it has come down from its peak. He further said, 'Growth has moderated certainly. Growth has come down from 8.5 per cent and 6.5 per cent in the last two years respectively to 5.5 per cent and 5.3 per cent (in the last two quarters).'
The RBI is always trying to manage the balance between growth and inflation, he said, adding that fall in growth to 5.3 per cent in the last quarter is a steep moderation. The headline inflation was 7.45 per cent in October.
He, however, said 7.5 per cent inflation is still high, though it has come down from its peak. He further said, 'Growth has moderated certainly. Growth has come down from 8.5 per cent and 6.5 per cent in the last two years respectively to 5.5 per cent and 5.3 per cent (in the last two quarters).'
The RBI is always trying to manage the balance between growth and inflation, he said, adding that fall in growth to 5.3 per cent in the last quarter is a steep moderation. The headline inflation was 7.45 per cent in October.
Next Story
