Finance Minister Pranab Mukherjee had said in Kolkata that he will not prescribe tight monetary policy. The RBI Governor had said RBI will not withdraw monetary stimulus unless sure of sustained economic recovery, even though inflationary pressures are there in the economy. RBI started loosening money supply from October last year to mitigate the impact of the global financial crisis on the Indian economy.
So far, the RBI has cut short-term lending rate by 4.25 per cent, short term borrowing rate by 2.75 per cent and the cash reserve ratio by 4 per cent.
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks