<p>Briefing reporters, he termed Reserve Bank of India’s move as a good one and in tandem with the fiscal policy and thinking of the government. “It will have a salutary impact on the inflationary pressure,” he added. <br /><br />Planning Commission Deputy Chairman Montek Singh Ahluwalia said RBI had taken the “right” stepas inflation was above comfort level.<br /><br />On RBI’s forecast of inflation hovering at 8 per cent as against earlier projection of 7 per cent by March end this year, Ahluwalia said “though there was expectation that inflation would come down to 7 per cent one has to keep in mind that inflation rate in February is higher than what one wanted it to be”.<br /><br />On whether tight monetary policy would impact growth he said in the long run overall growth momentum would not be hurt. Commerce & Industry Minister Anand Sharma hoped that that credit would continue to be made available “freely, liberally and on good terms to the industry”.<br /><br />He said “industry must be encouraged to step up investments for capacity building and for additional capacity creation. This is vital for boosting growth.”</p>
<p>Briefing reporters, he termed Reserve Bank of India’s move as a good one and in tandem with the fiscal policy and thinking of the government. “It will have a salutary impact on the inflationary pressure,” he added. <br /><br />Planning Commission Deputy Chairman Montek Singh Ahluwalia said RBI had taken the “right” stepas inflation was above comfort level.<br /><br />On RBI’s forecast of inflation hovering at 8 per cent as against earlier projection of 7 per cent by March end this year, Ahluwalia said “though there was expectation that inflation would come down to 7 per cent one has to keep in mind that inflation rate in February is higher than what one wanted it to be”.<br /><br />On whether tight monetary policy would impact growth he said in the long run overall growth momentum would not be hurt. Commerce & Industry Minister Anand Sharma hoped that that credit would continue to be made available “freely, liberally and on good terms to the industry”.<br /><br />He said “industry must be encouraged to step up investments for capacity building and for additional capacity creation. This is vital for boosting growth.”</p>