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Home Economy

In wake of inflation monetary policy needs to be calibrated says RBI Governor

by NS
January 17, 2011
in Economy
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RBI Governor D Subbarao today said the country was facing surging inflation and that monetary policy needed to be calibrated to manage it as well as support growth. He said, a lot of other countries are still flirting with deflation and on the other hand, we are having a surging inflation.

The RBI Governor told a gathering of students in Mumbai that for the Reserve Bank the challenge is to calibrate monetary policy taking into account the demands of inflation management and the demand of supportive recovery.

His comments come a week before the central bank is to announce the third quarter monetary policy review on the 25th of this month.

He, however, added there was no template for monetary policy management or inflation management.

While noting that there has been broad-based recovery across the globe, Subbarao said, though we recovered faster from the crisis, inflation also caught up with us sooner than others.

NS

NS

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