RBI liquidity step may help moderate inflation: FM
Quotes

RBI liquidity step may help moderate inflation: FM

Last Updated: Friday, August 23, 2013, 17:46
 
 Comment 3
 
RBI liquidity step may help moderate inflation: FM
New Delhi: Finance Minister P Chidambaram Friday said the Reserve Bank's liquidity tightening steps to check rupee volatility would also help in moderating inflation.

"Liquidity tightening measures though aimed at check speculation in the currency market, would also have salutary impact of inflation moderation," he informed Lok Sabha through a written reply.

With the increased pressure on rupee accompanied by volatility, Reserve Bank of India (RBI) has taken various measures to tighten liquidity, like increase in the rate for Marginal Sanding Facility and making it mandatory for banks to have 99 percent of the CRR on daily basis.

Inflation, based on the Wholesale Price Index (WPI), increased to a five-month high of 5.79 percent in July. The rate of price rise was 4.86 percent in June.

Chidambaram further said government has taken a number of fiscal and administrative measures from time to time to contain inflation especially food.

The measures include, reduction of import duty to zero on several items like wheat, onion and pulses and banning of export of edible oil and pulses.

WPI inflation in the food articles category rose to double digits at 11.91 percent in July.

The rupee had lost 44 paise to close at a new low of 64.55 against dollar, after breaching the 65 mark to all-time intra-day low of 65.56 in yesterday's trade at the Interbank Foreign Exchange market.

PTI


First Published: Friday, August 23, 2013, 13:33


Comments


comments powered by Disqus
Forbes 2015 Rich List
Forbes 2015 Rich List
Audi TT Coupé
Audi TT Coupé
Shanghai Auto Show 2015
Shanghai Auto Show 2015
PM Narendra Modi in France
PM Narendra Modi in France
PM Modi`s Make in India push in Germany
PM Modi`s Make in India push in Germany

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved