‘Monetary policy alone will not help control inflation’

Abhishek Law Updated - September 26, 2011 at 10:48 PM.

Relying on monetary policy alone will not help control inflation, Mr NK Singh, Member of Parliament and former member of Plan Commission said here on Monday.

According to Mr Singh, repeated rate hikes leads to a higher cost of borrowings "There has been a disproportionate reliance on monetary policy. Monetary policy alone cannot control inflation," Mr Singh said while speaking at an interactive session organised by the Indian Chamber of Commerce (ICC).

He further added that apart from dependence on monetary policy alone, fiscal consolidation should also focus on subsidy rationalisation and expediting tax reforms.

Published on September 26, 2011 09:25