India's FM Not For Tight Monetary Policy

Sponsored Links

Finance Minister Pranab Mukherjee said on Wednesday that the Reserve Bank of India (RBI) should not tighten the monetary policy, as the government was planning to borrow huge amounts from the market, reports PTI. He said the government's fiscal policy and the RBI's monetary policy, implemented to overcome slowdown, started yielding results with signs of recovery becoming visible. He said that the government planned to borrow about Rs.4.5 lakh crore from the money market during the current fiscal, compared to the Rs.3.1 lakh crore in the last fiscal.

The RBI is to announce its second quarterly review of the monetary policy on October 27.

Mukherjee said that the country could grow at more than 6% this fiscal, adding that both fiscal and monetary policies were well on track. The Asian Development Bank (ADB), in its recent update on Asian Development Outlook, revised India's growth upwards for this fiscal, with the planning commission estimating it to be 6.3%.

(Market News Provided by RTTNews)