The country's chief statistician Pronab Sen cautioned RBI against taking a hawkish monetary policy stance, saying too many measures to control inflation can be detrimental to growth. Core inflation entered provisionally double digits in May, fueled by over 16 per cent food inflation. Her said, the Reserve Bank of India (RBI) need to take some monetary steps as core inflation is starting to get worrying. He said, not just inflation, full bunch of other sectors also needs to be looked into by the RBI before tightening of the money supply. Asked whether RBI will raise the amount of deposits that banks are mandated to park with the apex bank, CRR or the short-term lending rate, repo rate, Mr.Sen said, it depends on the diagnosis of the problem."
News On AIR | June 23, 2010 12:42 PM
Too many measures to control inflation detrimental to growth: Pranab sen