The Finance Minister Mr. Pranab Mukherjee has said that the new monetary policy is expected to further ease inflation which is already going down. In a statement after the Apex Bank announced its new credit policy in Mumbai, Mr. Mukherjee said that it will also keep on track the growth process. Mr. Mukherjee while expressing happiness over the new policy said that the bank has not only raised policy rates but also narrowed down the spread between the repo and reversed repo rates. He said this has been done by raising the reverse repo rate by half a per cent and repo rate by a quarter per cent. Mr. Mukherjee asserted that this will lead to a more efficient financial system.AIR correspondent reports that the new policy is expected to moderate inflation by reining in demand pressures and inflationary expectations. It will also maintain financial conditions for growth momentum and generate liquidity conditions consistent with more effective transmissions of policy actions. It will also help reduce the volatility of short term rates. The RBI Governor announced the policy in Mumbai this morning.