RBI governor has interesting task, needs balance

New Delhi, Jan 29: The RBI Governor has a very challenging task before him and needs a great balance, said CII President R Seshasayee commenting on the prospects on interest rate ahead of the review of the monetary policy due on January 31.

The growth imperative would be high on the mind of the RBI Governor. However, a high inflation is a matter of great concern, Mr Seshasayee said.

The situation is complex with inflation hovering around six per cent, strong pressures from international and domestic prices of critical food items, increases in prices of some industrial items, and the growth of money supply being around 20 per cent, he added.

While some of the supply side issues are being addressed through customs duty reductions, it would be interesting to see how the demand side is being viewed by the RBI when the policy announcement is made on the 31st January, he said.

UNI