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FM: RBI policy will not hurt inflationary situation
December, 16th 2010

The Reserve Bank of India's (RBI) policy decision will not hurt inflationary situation, Finance Minister Pranab Mukherjee said on Thursday.

"I don't think this decision will adversely impact inflationary trend but it will increase the availability of the liquidity," Mukherjee said.

The Reserve Bank of India in its policy review on Thursday kept key interest rates on hold as expected but said inflation is significantly above its comfort level.

However, the RBI cut the statutory liquidity ratio, or the minimum mandated amount of bonds that banks need to keep as a percentage of deposits, to 24 per cent from 25 per cent.

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