6% Growth Rate Achievable: Pranab

Welcoming the Central Bank’s stance in its second quarterly review of the monetary policy, Finance Minister Pranab Mukherjee has made it clear that there will be no rollback of the stimulus package in a hurry.

In his reaction to monetary policy review, Mukherjee told reporters outside his North Block office, “Until the economy is on a firm recovery path, the stimulus will continue.”

“I agree with the assessment of the Reserve Bank,” said the Finance Minister, following an increase in the statutory liquidity ratio by 100 basis points to 25 per cent by the Central Bank while keeping all other policy rates and reserve ratios unchanged.

On Central Bank’s projection of the economic growth at 6 per cent, Mukherjee said that he was more comfortable with the assessment of 6.25-6.75 per cent made by the Prime Minister’s Economic Advisory Council.

He said that the policy review was on expected lines with no big changes in key rates and would work in tandem with the fiscal policy of the Federal Government.

“Both fiscal and monetary policies are in close conformity with each other,” Mukherjee said in his initial reactions after the policy review was presented by Reserve Bank of India Governor D Subbarao in Mumbai.

“The rates had been discussed with the Reserve Bank earlier. The Reserve Bank governor had met me a few days ago. He met me on Friday. We had discussed and he indicated there would be no change in the rates,” he said.

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