Immediate priority is to manage Inflation: Subbarao

Mumbai, Sep 5 (UNI) The new Reserve Bank of India Governor Dr Divvuri Subbarao today said his immediate priority will be to manage inflation and anchor inflationary expectations.

Addressing the media after taking charge from Dr Y V Reddy here, Dr Subbarao said, ''As a Reserve Bank Governor my first priority would be price control and the short to medium term priority would be to pursue financial sector reforms in the context of financial and price stability, firmly grounded on real sector reform.'' However, he said it would be a great challenge for him to take over as RBI Governor at this juncture.

''It was a privilege to head the RBI and a challenge to step into the shoes of Dr Reddy, who had set up an iconic reputation,'' Dr Subbarao said complimenting the service of the former Governor.

He was fully appreciative of the manner in which Dr Reddy had led the Bank with dignity.

Dr Subbarao, 59, is the 22nd governor of the Apex Bank and the first technocrat graduated from IIT Kanpur, also stressed that financial reform is above all needs.

He is the seventh Union finance Secretary and 11th bureaucrat to become governor in the Apex bank's 73-year history.

Dr Reddy handed over the charge to Mr Subbarao with a warm welcome. Earlier the new Governor was received ceremonially at the portals of the headquarters of the Central Bank.

UNI PP-VK RN SKB1646