India committed to price stability, says PM

"...as India moves forward towards a growth path of 9-10 per cent per annum," it needs to commit itself to reasonable price stability, Singh said while releasing a compendium of key speeches of RBI Governors here.

Singh said this in the presence of RBI Governor D Subbarao who is due to unveil the quarterly review of monetary policy on January 29.

In the wake of wholesale price-based inflation escalating to 7.31 per cent for the month-ended December and food prices increasing by over 17 per cent, it is expected that RBI will signal tightening of money supply.

The Prime Minister would also be meeting the chief ministers later this month to review the price situation, particularly with regard to essential commodities like pulses, and sugar.
Singh said the growth path also commits itself to inclusion of the poor in the financial and credit system of the country.

The Prime Minister said he wants financial policies which pay attention "to the needs of the poorer section of our community."

While releasing the book titled 'Perspectives on Central Banking: Governors Speak' Singh said, "I am very happy to release this compilation which marks the platinum jubilee celebrations of a great institution - the Reserve Bank of India."

Singh, who himself was Governor of the Reserve Bank from 1982 to 1985 said, "I have every reason to believe that the next 75 years will be still more productive, still more innovative in the long history of our country."

The Reserve Bank played a very important role in drawing the attention of our country to make our credit system more sensitive to the needs of our farmers and our rural community, he said.

Speaking on the occasion Subbarao said, "the high esteem in which the RBI is held today owes much to the intellectual leadership and vision of successive Governors. The speeches in this compendium are a testimony to that."

The speeches are also a journey through time and provide a glimpse into the ideas, issues and concerns that engaged the RBI over the years, Subbarao noted.
The book contains 32 speeches by 8 governors, he said, adding, the wide-ranging themes covered by the speeches that include monetary policy, external sector management, economic development, poverty reduction, and challenges of managing economic policy in a globalising environment - are a reflection of the broad mandate of the RBI and its enduring concern for the larger public good.