Monetary and fiscal authorities are taking steps to moderate inflation and push growth, Department of Economic Affairs Secretary Ajay Seth said on Wednesday.
His comments came in the backdrop of Reserve Bank of India (RBI) increasing the key interest rate by 50 basis points with an aim to tame inflation. The central bank also raised inflation projection to 6.7% while maintaining the growth estimate at 7.2% for the current fiscal.
“There are domestic challenges and larger ones are there in the global scenario. Whatever it takes for monetary and fiscal authorities, those actions are being taken. We (are working) to moderate the inflation (and) at the same time keep the growth efforts as earlier,” Mr. Seth told reporters.
He was responding to questions on the RBI’s decision on the interest rate front.
Mr. Seth said that apart from growth and inflation, the authorities were also working on the management of the rupee and retaining the fiscal balance. Both monetary and fiscal authorities were working towards that goal, he added.
“There cannot be any copybook solution. As new information emerge, they are analysed and whatever it takes to meet those challenges, those measures will be taken,” he added.