India growth story intact, to rein in inflation: RBI

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Hyderabad, June 6 (UNI) Expressing confidence in the country continuing to register high growth rate during this fiscal, Reserve Bank of India Governor Y V Reddy said the Central Bank is ready to use 'the complete range of instruments,' including foreign exchange reserves to obsorb oil shock and curb inflation.

Talking to reporters here last night, Dr Reddy said the volatility in crude oil prices in the international market has been factored in the monetary policy during April. However, the spurt in crude prices has been more than anticipated.

Subject to the favourable monsoon conditions, the Gross Domestic Product (GDP) is sure to grow between eight and 8.5 per cent, he observed, asserting that the fundamental drivers of the economy continued to remain strong.

The RBI would make use of full range of instruments, both conventional and non-conventional, to tame inflation.

''There is no serious contagion of global turbulence in the Indian market,'' he opined.

The sharing of burden, following the crude oil price hike is not not fully complete, he felt.

UNI SM GM SG AS1407

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