RBI monetary policy aims at balancing growth, inflation: Jaitley

RBINew Delhi, June 4 - Finance Minister Arun Jaitley has described the RBI's second bi-monthly monetary policy as a calibrated approach aimed at striking a balance between growth and inflation.

The RBI has reduced the SLR ( statutory liquidity ratio ) by 50 basic points while maintaining the repo rate as unchanged

In a statement issued here last evening, Jaitley said that it is a priority for the government to maintain a balance between growth and inflation.

"The Government is also concerned with restarting the investment cycle and moving towards higher growth and employment generation. We would like to address the problem of inflation through supply side measures particularly in relation to food inflation. Fiscal consolidation is a priority for the Government," he added.

He further said the RBI has also chosen to maintain a balance between growth and inflation while keeping the policy rates unchanged.

"It has allowed banks to lend more to the private sector since they will be required to subscribe less to government securities than earlier. It has followed a caliberated approach aimed in the direction of balancing between growth and inflation," he added. (ANI)