The Reserve Bank of India should be sensitive to problems of poor due to inflation while deciding on key rates Mr, its Governor, Dr D Subbarao, said.
Delivering the K Obayya Memorial lecture on 'R B I - Making a Difference in Everyday Life’ here on Thursday, Dr Subbarao said there was criticism from corporates on not reducing rates.
People say that RBI's monetary tightening did not reduce inflation but crippled growth. "I have regards and sympathy for corporates. But I need to be sensitive to the voices of hundreds of millions, whose voices are not heard in English newspapers," Dr Subbarao said.
Inflation could not be controlled without sacrificing growth, he said.
There has been a demand and expectation among industry and banks that R B I would reduce rates in the policy review on Monday.