Concerned over declining economic growth, Reserve Bank Governor D. Subbarao has indicated that the central bank could reverse the tight monetary stance adopted by it since March 2010 to tame inflation.Subbarao told the BBC in an interview, that from here on one could expect a reversal of monetary tightening.But the RBI Governor also clarified that it was difficult to say when that will take place, and in what shape it will roll out. Subbarao said that although inflation still remains a risk, the RBI is aware that it needs to boost growth amid an uncertain global economic environment.He said the balance between growth and inflation will shift in 2012.The central bank is scheduled to announce its monetary policy review on January 24.
News On AIR | January 3, 2012 8:33 AM
RBI hints at reversing monetary policy to tame inflation