Finance Minister Pranab Mukherjee on Thursday said the Reserve Bank's move to inject 48,000 crore rupees into the system will help ease cash crunch, but will not add to inflationary pressure. Mr. Mukherjee told reporters in New Delhi that RBI is fully aware of the situation prevailing on the price front. RBI has announced plans to inject 48,000 crore rupees into the system through purchase of government securities technically called open market operations. The Finance Minister appreciated that for the last two years the monetary policy which has been adjusted by RBI in tandem with the fiscal policy has helped in maintaining the level of growth to come up to the higher growth trajectory. The Reserve Bank has also cautioned against the pressure on inflation from rising demand and global commodity prices. It said there is upward risk on its projection of 5.5 per cent inflation by this fiscal end.Meanwhile, according to the data released in New Delhi, food inflation rose to 9.46 per cent during the week ended December 4, from 8.69 per cent in the previous week.
News On AIR | December 16, 2010 6:47 PM
RBI’s move to inject 48,000 crore rupees won’t add to inflation: Pranab