December 17, 2010 10:03 AM

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RBI’s move to inject Rs 48,000 cr into system to help ease cash crunch

Finance Minister Pranab Mukherjee has said that 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. Mukherjee told reporters in New Delhi yesterday 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.

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