New Delhi: Finance Secretary Ashok Chawla on Tuesday said the RBI's focus is growth and the time is not ripe for any reversal in the central bank's accommodative monetary policy despite some concerns regarding inflation.
Chawla was speaking to reporters after the Reserve Bank of India (RBI) left the short-term borrowing and lending rates and the bank's cash reserve ratio unchanged in its quarterly review of the annual credit policy.
"The RBI's credit policy continues the stance which they have been adopting in the past and they have indicated their high priority remains growth, which they want to see in the near future," he said, adding there is scope for rate cuts by the banks.
While accepting the RBI talked of the concern regarding inflation and that they will be monitoring the situation, Chawla said the central bank does not feel it is time for exit from the measures taken to tackle the economic crisis.
"They do not see the need at this point in time of reversing the accommodative and balanced policy which they have been following so far," he said, adding that the RBI will take steps as and when necessary.
On the exit policy, he said, "Well, the exit policy is certainly there at the back of the mind of all central banks all over the world ... But there is nothing at this point of time."
First Published: Tuesday, July 28, 2009, 16:10