With the Reserve Bank of India opting for status quo in its monetary policy review on Tuesday, the Finance Ministry said going forward the central bank should examine the liquidity situation, inflation and growth while fixing the policy rate.
“...going forward, the RBI should examine the liquidity situation, inflation and growth in setting policy rates,” the Finance Ministry said in a statement hours after RBI Governor Raghuram Rajan announced the third bi-monthly monetary policy review.
Recent data on inflation show that inflation is moderating.
“On its part, the government remains committed to the path of fiscal consolidation and reviving the investment cycle that will help bring down inflation and pick-up growth further,” it said.
