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The Finance Minister Arun Jaitley has hailed the RBI’s monetary policy announcement, stating that it has followed a “calibrated” approach aimed in the direction of balancing between growth and inflation.
The latest RBI policy has allowed banks to lend more to the private sector as they will be required to subscribe less to government securities than earlier, Jaitley said in a Facebook post.
Jaitley said it was 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”, he said.
Fiscal consolidation is a priority for the Government, he added.
The RBI on Tuesday reduced the statutory liquidity ratio — amount commercial banks are required to maintain with RBI in the form of gold or government approved securities -- by 50 basis points while maintaining the repo rate as unchanged.
Repo rate is the interest rate at which the RBI lends to commercial banks.
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