On a day when new Finance Minister Arun Jaitley took charge, Reserve Bank of India (RBI) Governor Raghuram Rajan said the central bank would continue with its efforts to check inflation and take initiatives to boost growth.
“It is absolutely a task that the government and the RBI are engaged (in fighting inflation…the RBI has always maintained the balance between growth and inflation and we will continue to do so,” Dr. Rajan told journalists after meeting Mr. Jaitley on Tuesday. Dr. Rajan, who was one of the top government officials who called on Mr. Jaitley after he assumed charge, is learnt to have discussed the current economic scenario and steps needed to lift economic sentiment. Significantly, the RBI will hold its bi-monthly monetary policy review on June 3. Apart from high inflation, Mr. Jaitley will have to take steps to boost industrial production. On the current account deficit (CAD) that declined to 1.7 per cent of GDP in 2013-14, Dr. Rajan said the number was very healthy.
Asked about easing of curbs on gold imports, the RBI Governor said: “You will see policies as they are rolled out.”
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PTI reports:
Soon after taking charge of the Finance Ministry, Mr. Jaitley pledged to contain price rise. A persistent decline in industrial production and a surge in inflation pose big challenge for the new BJP government. Industry leaders, meanwhile, have been clamouring for low interest rates to spur growth.