Move will aid checking price

 Briefing reporters, he said, “the monetary policy just announced by RBI is another calibrated step in the right direction ... The Reserve Bank of India has not only raised policy rates but has narrowed down the spread between repo and reverse repo rates for a more efficient financial system.”

One should be happy that Reserve Bank of India has not increased the Cash Reserve Ratio (CRR) — amount of funds commercial banks are required to deposit with the Reserve Bank of India, Mukherjee said.

Hike in CRR would have put more pressure on overall availability of funds, which has already been under some strain because of successful auction of 3G, he said.