Suryaa Business Desk: Surya Economy & Business Bureau, Mumbai: The first and foremost responsibility of the Reserve Bank of India (RBI) is to maintain price stability in the country's economy, RBI... Surya Economy & Business Bureau, Mumbai: The RBI Governor has reiterated that the first and foremost responsibility of the Reserve Bank of India (RBI) is to maintain price stability in the country's economy. He made it clear that the first priority of the Monetary Policy Committee is to keep inflation under control without burdening the common man, while providing the necessary contribution to the macro economic growth of the country.
Inflation control is a stable foundation for economic growth: The Governor said that the central bank is vigilant about price stability in the face of global geo-political uncertainties and fluctuations in food prices. He opined that only when the prices are stable, people's confidence in the economy will increase and business investments will gain momentum. Although the manufacturing and services sectors are strong domestically, monetary policy decisions are being taken keeping in view the pressures arising in international supply chains, he said.
Balanced Leverage Policy: He clarified that the Reserve Bank is committed to maintaining a balance between the two parallel objectives of economic growth and inflation control. While maintaining adequate liquidity (availability of money) in the banking system, repo rates and leverage instruments are used to avoid the threat of hyperinflation. The Governor has once again made it clear that price control is the best medicine to achieve sustainable and inclusive economic progress.
