Price Stabilisation and financial stability priorities:Reddy

By Staff
|
Google Oneindia News

Mumbai, July 31 (UNI) The RBI Governor Dr Y V Reddy today reiterated that apart from keeping check on excess liquidity , vigil on price stabilisation will be the priority and more focus will be on the households by the central bank for the financial stability of the country.

Dr Reddy told reporters here that ''price stabalisation is a necessary condition for the sustainable growth of the economy.

Though, it is not sufficient condition but is necessary for statuary growth momentum.'' It is important to design monetary policy such that it protects growth by contributing to the maintenance of stability. Accordingly, while the stance of monetary policy would continue to reinforce the emphasis on the price stability and well anchored inflation expectations and thereby sustain the growth momentum, contextually, financial stability may assume greater importance in the months to come, he asserted.

Dr Reddy pointed out that since Indian economy is tending towards more liberalisation and global integration, more focus on capital management and vigil on prise stability needed to be kept on priority for the financial stability of the country.

He stressed ''at a time when unexpected capital flows at far-far extreme and keeping in mind the extent of volatality of money market amidst surplus conditions, domestic savings are important for people. '' Dr Reddy said Monetary policy in India would continue to be vigilant and pro-active in the context of any accentuation of global uncertainties that pose threats to growth and stability in the domestic economy. The domestic outlook continues to be favourable and would dominate the dynamic setting of monetary policy in the period ahead, he added.

UNI

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X