Inflation still high, no room for monetary stimulus: RBI

LUCKNOW, JAN 16: 

Ahead of its third quarterly policy, the Reserve Bank has said that inflation was still high and there was no room for fiscal or monetary stimulus to boost growth in slowing economy.

“When growth is slowing down you can stimulate the economy either by monetary easing or by fiscal stimulus, but both monetary and fiscal side have no room for stimulus. So that is the big concern,” RBI Governor D Subbarao said while addressing IIM students last evening.

Notwithstanding expectations of interest rate cut by the Reserve Bank of India (RBI) in its quarterly monetary policy on January 29 on back of declining inflation, Subbarao said, “Inflation has come down, (it is) still high.”

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