CM urges RBI to ensure inflation at 4%

Chief minister Y S Rajasekhara Reddy today urged Y Venugopal Reddy, Governor, Reserve Bank of India (RBI), to ensure steps to further decrease the country's inflation to 4 per cent level, so that interest rates on farm credit and other necessary investments in key areas could be reduced.

He made this suggestion when the RBI Governor met him here on Wednesday evening. Interacting with mediapersons after his brief meeting with the chief minister, YV Reddy said that Andhra Pradesh is doing quite well on agriculture front, especially in increasing the flow of farm credit.

Terming the country's economic situation as very comfortable at 7 per cent GDP growth and inflation being contained at 5.5 per cent level, the RBI Governor hoped it will create conducive atmosphere for the all-round development.

Citing the chief minister's suggestion on reducing inflation, he said that the issue is governed by various factors.

He also appreciated the state government's efforts in reviving the co-operative banks and said banking sector and the Government in Andhra Pradesh enjoy excellent relations.