Monetary policy stance unchanged: Reddy

New Delhi, Nov 3 (UNI) RBI Governor Y V Reddy today said the Central Bank's stance on monetary policy as outlined recently in the Mid Term Review of the Annual Credit Policy remains unchanged, notwithstanding the upward trend of inflation reported at 5.41 per cent for the week ended October 21,2006.

"The stance on the RBI has not changed", Dr Reddy said in reply to a question from a reporter on the inflation data released this morning.

Dr Reddy's remarks on inflation came during an informal meeting he had with the financial press at the RBI's office.

The credit policy has put the average rate of inflation between 5-5.5 per cent during the current fiscal.

Dr Reddy outlined global and domestic supply constraints, the money supply situation, the demand pressures and the investment boom as the factors which could be contributing to the inlfation rate.

UNI GS PV HT1510