TIOL-DDT 1721 · Thursday, 27 October 2011 · story 5 of 5

FM Hums RBI Tune - Repo Rate Increase

FINANCE Minister Pranab Mukherjee says that:

++ RBI's monetary policy announcement would help in getting us back to a more comfortable inflation situation soon while leaving scope for growth to pick up in the second half of current fiscal year.

++ RBI Governor has chosen to reinforce his commitment to moderate inflation and check inflationary expectations, in the face of continued stickiness in headline inflation.

++ This has implications for credit costs and investment growth. We are looking at all options for strengthening investment sentiments in the coming months.