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Moderating growth will ease inflation: Gokarn

Last Updated: Saturday, December 3, 2011 - 11:38

Mumbai: India's moderating growth will help to ease inflationary pressure in the country, deputy governor of the Reserve Bank of India Subir Gokarn said on Saturday.

Domestic liquidity conditions are likely to remain stretched for some time, Gokarn added, but said that the central bank would ensure that liquidity stays at comfortable levels.

India's GDP growth fell to 6.9 percent in the second quarter of the current financial year, its weakest pace in more than two years, as persistently high inflation and 13 interest rate hikes since March 2010 bite.

The RBI in its last policy meeting on October 25 had indicated that it was likely to hold rates in its December 16 review, if inflation "trajectory conformed to projections".

Bureau Report

First Published: Saturday, December 3, 2011 - 11:38
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