| Finmin, RBI to ensure price stability |
| Our Web Bureau / Mumbai March 6, 2005 |
| The customary, post-budget meeting of the central board of the Reserve Bank of India (RBI) with the finance minister was held in New Delhi yesterday, according to a release posted on the website of RBI. "The finance minister conveyed to the board that the government attached the highest importance to maintaining price stability. He recognised the challenges posed in managing appropriate monetary environment in the face of strong capital inflows and emphasised the equal importance of maintaining price stability and accelerating growth momentum. The FM looked forward to a year of growth, low inflation and a benign interest rate scenario. In this context, he expected banks to become more competitive and efficient and thus lower their spreads which were still high. He added that the RBI and the government should continue to work together to maintain price stability and benign interest rate environment and to ensure adequate credit flows to agriculture and other productive sectors," the release said. The meeting was also attended by K M Chandrasekhar, secretary, revenue and D. Swarup, secretary, expenditure. "Besides Dr. Y. V. Reddy, Governor of the Reserve Bank, Dr. Rakesh Mohan, secretary, economic affairs, K J Udeshi, V.Leeladhar and Shyamala Gopinath, deputy governors of the Reserve Bank, the other directors of the central board of the RBI present at the meeting included A.S. Ganguly, Y. H. Malegam, Mihir Rakshit, H. P. Ranina, K. Madhava Rao, K. P. Singh, V. S. Vyas, N. R. Narayana Murthy and D. S . Brar," the release added. Welcoming the various initiatives, the directors appreciated the FM |
