RBI More Conscious About Both Growth, Inflation Says Chidambaram

The Reserve Bank of India is more conscious now than before that containing inflation and boosting growth are both important for the economy, and will keep that in mind while deciding the policy rate, Finance Minister P. Chidambaram said on Thursday.

He said the total capital requirement for state-run banks is Rs 45,500 crore ($7.6 billion) in 2014/15 fiscal year, much lower than the Rs 11,300 crore provided for recapitalisation in the interim budget in February.

Mr Chidambaram also said that India's monetary policy decisions must take into account price stability and economic growth.

A Reserve Bank of India panel in January proposed moving to an inflation target of 4 per cent in three years, with a 2 per cent band on either side when setting monetary policy, sharply below current levels.

Copyright: Thomson Reuters 2014