Inflationary pressures easing, says RBI

"There is evidence that growth is getting more broad-based. Inflationary pressures too are easing because of improved supply position as also the impact of monetary tightening effected by the Reserve Bank," he said while delivering a lecture here.

"Going forward, the Reserve Bank will calibrate policy action to the evolving growth inflation dynamics," Subbarao said."Given the uncertainty in the world and the lags in monetary transmission, it is not possible to offer more precise guidance. All I can say is that our guide post is festina lente-as the Romans used to say-make haste slowly".

Subbarao, who was speaking on "Economic Crisis and Crisis in Economics : Some Reflections", said the Reserve Bank has to balance between the objectives of growth, price stability and financial stability.

"Determining this prioritisation is the judgement call of the Reserve Bank. People who apprehend that monetary tightening will hurt growth must remember that even if there is some sacrifice of output in the near-term, we are better off curbing inflation since inflation can be inimical to sustainable and equitable growth in the medium term", he added.