RBI to ensure price stability
By Our Banking Bureau | 28 Aug 2004
Hyderabad: Reserve Bank of India governor, Y.V. Reddy, expressed confidence in ensuring price stability and containing the inflationary expectations.
Addressing senior members of the banking community at the Institute for Development and Research in Banking Technology (IDRBT) yesterday, he said the apex bank has been closely monitoring the developments on the current macro-economic situation in the country and would initiate measures on an ongoing basis to ensure price stability.
Several fiscal actions were taken in the recent past in relation to cutting duties on oil and steel, which indicates a determined fiscal response. The corporate entities have also taken upon themselves the importance of maintaining certain amount of pricing.
Another development was that the RBI has held a series of discussions with the banks and institutions, which resolved to have price stability and minimise volatility and knee-jerk reactions.
He described the truckers' strike as temporary supply disruption in certain localities rather than a factor influencing inflationary expectations. According to the RBI governor, the money markets and forex markets were stable, though there was certain amount of volatility in the Government securities market.
