Supply side improvement needed to check inflation: Chidambaram

Mumbai, Apr 11 (UNI) Union Finance Minister P Chidambaram today said that an improvement in the supply side, together with quick monetary and fiscal steps, will bring inflation rates to moderate levels.

''I can't give you a date when the rates (of inflation) will come down to moderate levels. However, we have to see an improvement in the supply sides,'' Mr Chidambaram said while speaking to reporters on the sidelines of the 32nd annual conference of the International Organisation of Securities Commissions (IOSCO) here today.

There are some sectors where credit growth continues to be high, he noted while stressing that in the larger interests of the country, the credit growths have be moderated.

''I believe the Reserve Bank of India (RBI) is aware of its responsibilities and the necessary steps to be taken. Whatever steps are to be taken, we have to keep in mind the stability of growth,'' he said.

On the issue of hedge funds, the Finance Minister said, ''If hedge funds wish to come to India and if SEBI is comfortable in allowing them, then I am sure SEBI will put in place appropriate regulations under which hedge funds can operate,'' he added.

Earlier, while addressing the conference, Mr Chidambaram said in a rapidly expanding global economy, no security markets can remain ''islands''. It is essential to bring harmony among the market regulators to international levels, he said.

While globalisation remains a reality, matters including the inflow and outflow of capitals, increased inflation rates, financial stability of economies, are still posing challenges before the emerging economies, he added.

UNI