Money & Banking

Govt will walk alone to face the challenge of growth, says Chidambaram

Shishir Sinha New Delhi | Updated on March 12, 2018 Published on October 30, 2012

P. Chidambaram, Finance Minister.

Clearly showing disappointment over the Reserve Bank of India’s action of not cutting the policy rate, Finance Minister P. Chidambaram has vowed to walk alone to face the challenge of growth.

This statement has come within hours from RBI’s half-yearly review of monetary policy. Maintaining its tough stand on inflation, RBI refused to oblige with the popular demand by not cutting the policy rate i.e. repo rate. However, it did reduce the cash reserve ratio (CRR) by 25 basis points.

Reacting on policy review, the Finance Minister said: “Growth is as much a challenge as inflation. If the Government has to walk alone to face the challenge of growth then we will walk alone.”

On Monday, the Minister had announced a detailed fiscal consolidation plan which raised the hopes for rate cut.

“The Government is doing its best to send the clear message that we are on the path of fiscal consolidation. It is my hope that everyone will read and understand the government commitment to the path of fiscal consolidation,” he added.

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Published on October 30, 2012
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