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Country's economy is responding well, says Mukherjee |
Union Finance
Minister Pranab Mukherjee said on Tuesday that the country's economy is responding
well. Addressing the media here, Mukherjee said: "The economy, I would like to
say is responding well, the policy statement which we have initiated, the Reserve
Bank of India (RBI) and Finance Ministry are working in close co-operation and
this will continue for future." He noted that the economy was likely to expand
in the range of 6.5 to 6.75 percent during the fiscal year ending March 2010.
Mukherjee further elaborated that the easy monetary policy is likely to continue
until economic recovery is firm after the RBI started the first phase of its exit
from easy policy but held rates steady. Earlier in the day, the RBI laid the groundwork
for a rise in interest rates by tightening credit to the commercial property sector,
lifting its inflation forecast and warning of the threat of asset price bubbles.
The RBI left key interest rates on hold but surprised markets by removing emergency
liquidity support measures that were implemented to protect Asia's third-largest
economy from the global downturn. Mukherjee also informed that the government
took essential measures to tackle the adverse impact of inflationary pressure.
"In respect of the inflationary pressure I can tell you that we have taken major
steps to ensure that the adverse impact of inflationary pressure is reduced by
strengthening the supply management," he said "Commodities of short supply are
imported though there is likely to be shortfall of Kharif crops but the existing
stock is sufficient. There would be no shortage of food grains," Mukherjee added. |
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