The Hindu Business Line : Monetary policy vital for taming inflation: Montek

New Delhi, June 24 The Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, on Tuesday said that monetary policy has a role to play in taming inflation, which has now surged to a 13-year high of 11.05 per cent.

“High inflation is a problem, no doubt monetary policy has a role to play (in taming inflation),” Mr Ahluwalia told reporters after meeting his Pakistani counterpart, Mr Salman Faruqui, here.

Mr Ahluwalia also said that 9 per cent gross domestic product growth could be maintained even with the current oil price situation, but noted that it has become difficult. “Oil prices have to be reasonable and stable. Whether it impacts growth or not depends on how we handle it (oil price situation). We have to handle it in a manner that does not affect growth in the medium term,” he said.

Meanwhile, the economic division in the Finance Ministry expects the country’s economic growth to be around 8.5 per cent, plus or minus 0.5 per cent, in 2008-09.

More Stories on : Credit Policy | Economy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Credit market crisis — Lessons that the West can learn from India

Rupee faces downward pressure

Rupee ends flat

Monetary policy vital for taming inflation: Montek

Higher provisions for NPAs drag down IndusInd Q4 net

‘ICICI Pru’s mobile payments facility a hit’

US interest rates: Fed likely to pass

Bonds recover on short covering

Loans set to become dearer

Hike will rein in credit growth: RBI

Religare Finvest issues CCDs for Rs 100 cr

NIS Sparta to train debt recovery agents

Call rate closes higher

PNB gets nod for rep office in Norway

United Bank, Kotak Mahindra tie up