(a) whether the Reserve Bank of India (RBI) looks for reversing the expansionary policy pursued in the wake of the Global economic crisis as reported in the ‘Indian Express’ dated June 21, 2009;
(b) if so, the reasons therefor and the likely impact on revival plans of the Industry and rising prices of consumer goods; and
(c) the precautionary measures being taken in this regard?
MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI NAMO NARAIN MEENA)
(a), (b) & (c) The First Quarter Review of Monetary Policy 2009-10 by the
Reserve Bank of India (RBI) issued on July 28, 2009 is the latest official
release by the RBI. Therein, the RBI has stated that on the basis of overall
assessment, the stance of monetary policy for the remaining period of 2009-10
will inter alia be to “maintain a monetary and interest rate regime consistent
with price stability and financial stability supportive of returning the economy
to the high growth pathâ€.Further, the RBI has also mentioned that the “Reserve
Bank will maintain an accommodative monetary stance until there are definite and
robust signs of recovery.This accommodative monetary stance is, however, not
the steady state stance.On the way forward, the Reserve Bank will have to
reverse the expansionary measures to anchor inflation expectations and subdue
inflationary pressures while preserving the growth momentum. The exit strategy
will be modulated in accordance with the evolving macroeconomic developmentsâ€.