SME Times News Bureau | 04 Jun, 2014
Finance Minister Arun Jaitley Tuesday welcomed the Reserve Bank of
India's monetary policy stance saying the central bank has followed a
"calibrated approach" to strike a balance between growth and inflation.
The
RBI after its bimonthly monetary policy review kept the the policy
rates unchanged, but reduced the SLR (statutary liquidity ratio) by 50
basis points.
"The RBI has chosen to maintain a balance between
growth and inflation while keeping the policy rates unchanged. It has
allowed banks to lend more to the private sector since they will be
required to subscribe less to government securities than earlier. It has
followed a calibrated approach aimed in the direction of balancing
between growth and inflation," Jaitley said.
He was reacting to the apex bank's decisions earlier in the day.
The finance minister said it was a priority for the government to maintain a balance between growth and inflation.
"We
would like to address the problem of inflation through supply side
measures particularly in relation to food inflation," he said, adding
that fiscal consolidation is also a priority.
Jaitley said the
government was also concerned with restarting the investment cycle and
moving towards higher growth and employment generation.
